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28) For the following firms, find the retum on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit

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28) For the following firms, find the retum on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity) Financial Information ($ in millions, 2013) Sales Net Income Total Assets Liabilities Company PepsiCo $66,415 $6,740 $77,487 $53,199 Coca-Cola $8,584 $90,055 $56,882 $46,854 $28,106 McDonald's $5,856 $36,626 $20,617 Profit margin=6740/66415 = 10.148% TAT =66415/77487 = 0.8571 EM=TA E = 77487/(77487-53199) = 3.19 ROE =PM*TATEM = 10.148%*0.8571*3.19 = 27.75014% ROE ENI TE = 6740/(77487-53199) = 27.75%

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