Answer for question 1 DuPont analysis explains what is affecting company\'s ROE. DuPont analysis can be explained with formula as below ROE= Profit Margin× Total asset turnover× Leverage factor Profit Margin= Net Income/ Total Revenue Total Asset turnover=Revenue/ Total assets Leverage factor= Total assets/ Shareholder equity DuPont analysis points out operating efficiency in form of profit margin, Asset efficiency in form of asset turnover and leverage impact with the help of leverage factor as how much of the equity is used to finance total assets Solution Answer for question 1 DuPont analysis explains what is affecting company\'s ROE. DuPont analysis can be explained with formula as below ROE= Profit Margin× Total asset turnover× Leverage factor Profit Margin= Net Income/ Total Revenue Total Asset turnover=Revenue/ Total assets Leverage factor= Total assets/ Shareholder equity DuPont analysis points out operating efficiency in form of profit margin, Asset efficiency in form of asset turnover and leverage impact with the help of leverage factor as how much of the equity is used to finance total assets.