What do think the management should do to improve

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Evaluate Return on Equity for these two companies- (1). Berkshire Hathaway, (2). AllState corporation, for the last 1-3 years using the DuPont analysis:

Problem 1). Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three year, ( you may use the debt equity ratio).

Problem 2). Has these companies' ROE changed over the last 3 years? what factors contribute to this change?

Problem 3). compare the two companies' ratios and what do you think their management should do to improve on ROE.

Problem 4). develop a recommendation with supporting rationale based on the above financial performance of Berkshire Hathaway over the past 3 years, and discuss if its performance is sufficiently strong enough to attract investors.

Reference no: EM133001931

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