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Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). ($ millions) Sales Net income, consolidated 2018 2017 $32,765 5,363 Net income attributable to 3M shareholders Assets 5,349 36,500 $37,987 Total equity 9,848 11,622 Equity attributable to 3M shareholders 9,796 11,563 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) * % b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. 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 0.88 Financial leverage c. Compute ROA Round answer to two decimal places (ex: 0.12345 = 12.35%) * % d. Compute adjusted ROA (assume a statutory tax rate of 22% and pretax net interest expense of $207). Round answer to two decimal places (ex: 0.12345 = 12.35%) * %
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