What is fundamental analysis

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a) What is fundamental analysis? If we use the top down approach for fundamental analysis, name the three levels of analysis and briefly describe their usage.

b) What is Du Pont system (decomposition of ROE)? Using below data to assess the investment quality of the Company in 2017 and 2018.

i) Calculate the ROE and ROA for both years and comment on your findings.

ii) ROE and ROA, which one is more relevant to the investor?

iii) If the company didn't make any earnings, name two methods can be used for equity valuation.

Reference no: EM132924287

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