Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective
Compute 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) 2018 2017 Sales S32.765 Net income, consolidated 5,363 Net income attributable to 3M shareholders 5,349 Assets 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%) 54.6 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 16.33 X % Asset turnover 0.88 Financial leverage 0.73 X c. Compute ROA Round answer to two cimal places (ex: 0.12345 = 12.35%) 14.36 X % 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%) 14.36 X %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started