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3. Compute and Interpret Measures for DuPont Disaggregation Analysis (12 points) Use the information below for 3M Company to answer the requirements (perform these computations
3. Compute and Interpret Measures for DuPont Disaggregation Analysis (12 points) Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). Smillies) 2015 2014 Sales ISOTOS! Net income, consolidated Net income alibutable to JM starebolders Asses Total city Equity attributable to lM shareholders 5.312 33018531.500 11.347 13.14 11,708 13.100 1) Compute return on equity (ROE) of 3M in the year of 2015. Please show your computation Round answer to two decimal places (ex: 0.12345 12.35%) ROE 2) Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. Please show your computations Round profit margin to two decimal places (ex: 0.12345 = 12.35%) Round asset turnover and financial leverage to three decimal places. Profit margin- Asset turnover - Financial leverage - 3) Assume the industry sector that 3M is operating has the following ratios on average: ROE -20% Profit margin-8% Assets turnover ratio=0.84 Financial leverage = 3 Please comment on 3M's ROE, profitability, assets efficiency, and financial leverage by comparing its ratios to the industry averages
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