Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
Compute 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 $31.718 Net income consolidated 5,787 Net income attributable to 3M shareholders 5,779 Assets 33,395 $31,886 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%) 46.57 % 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 18.22 % Asset turnover 0.972 Financial leverage 1.85 X c. Compute ROA. Round answer to two decimal places (ex: 0.12345 - 12.35%) ROA 17.7 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 - 12.3596) 17.94

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Essentials Of Federal Taxation 2018

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

9th Edition

9781260007640

Students also viewed these Accounting questions