Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is the entire question. Directly Compute Nonoperating Return with Negative NNO Selected balance sheet and income statement information from Amgen Inc. for 2018 follows

This is the entire question.

image text in transcribedimage text in transcribed
Directly Compute Nonoperating Return with Negative NNO Selected balance sheet and income statement information from Amgen Inc. for 2018 follows ($ millions). Net income $8,898 Net operating profit after tax (NOPAT) 9,491 Net nonoperating expense (NNE) 594 Average net operating assets (NOA) 19,096 Average net nonoperating obligations (NNO) (907) Average total equity 20,003 Compute the following measures. a. Return on equity = Net income/Average total equity Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 44.5 % b. RNOA = NOPAT/Average NOA Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 49.7 % c. Nonoperating return = ROE - RNOA Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). (5.2) % d. NNEP = NNE/Average NNO Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 65.5 * % - DNOA NNCD 1,796 SEP 27Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 49.7 % c. Nonoperating return = ROE - RNOA Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). (5.2) % d. NNEP = NNE/Average NNO Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 65.5 * % e. Spread = RNOA - NNEP Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). 0 * % f. FLEV = Average NNO/Average total equity Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555). 32.74 g. ROE = RNOA + (Spread x FLEV) Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). O * % 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_2

Step: 3

blur-text-image_3

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

Computer Accounting

Authors: Donna Kay

14th Edition

007762453X, 9780077624538

More Books

Students also viewed these Accounting questions

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago