P3-52.Compute and Analyze Measures for DuPont Disaggregation Analysis Refer to the 201 8 financial data of Netflix

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P3-52.Compute and Analyze Measures for DuPont Disaggregation Analysis Refer to the 201 8 financial data of Netflix Inc. in P3-5 l to answer the following requirements.

Required

a. Compute ROE and ROA for 2018.

b. Confirm that ROE equa ls ROE computed using the component measures for profit margin, assets turnover, and financial leverage: ROE= PM x AT x FL.

c. Compute adjusted ROA (assume a statutory tax rate of 22%).

NETFLIX INC.

(NFLX) •

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Related Book For  book-img-for-question

Financial Statement Analysis And Valuation

ISBN: 9781618533609

6th Edition

Authors: Peter D. Easton, Mary Lea Mcanally, Gregory A. Sommers

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