Answer 2-4

2. Use the following financial information to answer the questions that follow: TAT Revenue Net Income Total Debt Dividend per share Earnings per share P/E ratio AAPL 0.77 $365.75 Billion $95 Billion $136 Billion $0.88 $5.61 26.7 MFST 0.39 $176.25 Billion $68 Billion $79 Billion $2.48 $8.94 37.3 2. Using the Dupont analysis, explain why AAPL has a higher ROE than MSFT. 30 points 3. Which firm has the higher operating efficiency? Explain. 10 points 4. Calculate Apple's sustainable growth rate. Use that and the dividend discount model to find the expected return for Apple. 10 points