P3-46.Direct Computation of Nonoperating Return Refer to the financial information of 3M Company in P3-44 to answer the fo llowing requirements. In 20 18, 3M's return on equity (ROE) is 50.09% and its return on net operating assets (RNOA) is 25.89% .

Required

a. Compute net nonoperating expense (NNE) and net operat ing profit after tax (NOPAT).

b. Compute net nonoperating obligati o ns (N NO).

c. Compute financ ial l everage ( FLEV).
d . Compute NNEP and Spread.

e. Compute the noncontrolling interest ratio (NCI ratio).
f Confirm the r elation: ROE = [RNOA + (FLEV x Sprea d)] x NCI ratio.
g. What does the breakdown of nonoperating re turn impl y about the compan y's u se of borrowed funds?