Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective

image text in transcribed
image text in transcribed
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). (Smillions) 2015 2014 Sales $30,674 Net income, consolidated 5,056 Net income attributable to 3M shareholders 5,048 Assets 32,898 531,389 Total equity 11.747 13,142 Equity attributable to 3M shareholders 11,708 13,109 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.35%) 0 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 0 96 Asset turnover 0 Financial leverage 0 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.35%) 0 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 0 Asset turnover 0 Financial leverage 0 c. Compute ROA Round answer to two decimal places (ex: 0.12345 - 12.35%) ROA 0 96 d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round answer to two decimal places (ex: 0.12345 = 12.35%) 0 Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

3 Column Record 100 Page Account Book

Authors: IJ Publishing LLC

Ntb Edition

1537091360, 978-1537091365

More Books

Students also viewed these Accounting questions

Question

Define paraphrasing and reflecting.

Answered: 1 week ago