Question
Traget Corp had after-tax Net Income of $150 million in the 2001 fiscal year and paid dividends of $30 million. The firm's sales were $2.0
Traget Corp had after-tax Net Income of $150 million in the 2001 fiscal year and paid dividends of $30 million. The firm's sales were $2.0 billion while assets were $1.25 billion and total debt was $500 million. There are 60 million shares outstanding.
Assuming that the profitability of the firm is stable, the proportion of net income paid out as dividends will remain the same in the foreseeable future and the mix of debt and equity is optimal, provide the following:
Q) Demonstrate the DuPont Identity by finding the following values =
Net Profit Margin
Total Asset Turnover
ROA
Equity Multiplier
ROE
Retention Ratio
Internally Sustainable Growth Rate
Sustainable Growth Rate
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