Question
For fiscal year 2017, Costco Wholesale Corporation(COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37.
For fiscal year 2017, Costco Wholesale Corporation(COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37.
a. Use this data to computeCostco's ROE using the DuPont Identity
b. IfCostco's managers wanted to increase its ROE by 1.10 percentagepoints, how much higher would their new asset turnover need tobe?
c. IfCostco's net profit margin fell by 1.10 percentagepoints, by how much would their asset turnover need to increase to maintain theirROE?
a. Use this data to computeCostco's ROE using the DuPont Identity
The ROE is
nothing
%. (Round to two decimalplaces.)
b. IfCostco's managers wanted to increase its ROE by 1.10 percentagepoints, how much higher would their new asset turnover need tobe?
The new asset turnover is
nothing
, which is an increase of
nothing
. (Round to two decimalplaces.)
c. IfCostco's net profit margin fell by 1.10 percentagepoints, by how much would their asset turnover need to increase to maintain theirROE?
The new asset turnover is
nothing
, which is an increase of
nothing
. (Round to two decimalplaces.)
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