Compute Measures for DuPont Disaggregation Analysis

Use the information below for $2018$ for $3$M Company to answer the requirements

a$.$ Compute return on equity $($ROE$)$ from the perspective of a $3$ M shareholder.

Note: $1.$ Select the appropriate numerator and denominator used to compute ROE from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute ROE.

b$.$ Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. Note: Perform these computations from a consolidated perspective.

Profit Margin $($PM$)$

Note: $1.$ Select the appropriate numerator and denominator used to compute PM from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute PM$.$

Asset turnover $($AT$)$

Note: $1.$ Select the appropriate numerator and denominator used to compute AT from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute AT$.$

Asset turnover $($AT$)$

Note: $1.$ Select the appropriate numerator and denominator used to compute AT from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute AT$.$

Financial leverage $(FL)$

Note: $1.$ Select the appropriate numerator and denominator used to compute FL from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute FL$.$

c$.$ Compute ROA. Note: Perform this computation from a consolidated perspective.

Note: $1.$ Select the appropriate numerator and denominator used to compute ROA from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute ROA.

d$.$ Compute adjusted ROA $($assume a statutory tax rate of $22\%$ and pretax net interest expense of $$102).$ Note: Perform this computation from a consolidated perspective.

Note: $1.$ Select the appropriate numerator and denominator used to compute adjusted ROA from the drop$-$down menu options. $2.$ Enter the numerator and denominator amounts to compute adjusted ROA