Question
3M Company had the net income of $4,570 million, taxes of $1,130 million, and the interest expense of $368 million in 2019.Its total assets are
3M Company had the net income of $4,570 million, taxes of $1,130 million, and the interest expense of $368 million in 2019.Its total assets are $44,659 million and total equities are $10,126 million in 2019.
a.Compute its Return on Equity (ROE) in 2019.
b.Compute its Return on Assets (ROA) in 2019.
c.If the industry average ROE is 8.98% and the industry average ROA is 3.92%, how did 3M Company perform in terms of ROE and ROA when compared to the industry averages?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
