Question
Use the following data to analyze ROE for 2009 and 2010 using the extended DuPont formula (5 component model). in millions 2010 2009 2008 Revenue
Use the following data to analyze ROE for 2009 and 2010 using the extended DuPont formula (5 component model).
in millions | 2010 | 2009 | 2008 |
Revenue | $100,000 | $96,000 |
|
Earnings before interest and taxes | 10,000 | 10,560 |
|
Earnings before tax | 8,000 | 8,500 |
|
Net income | 5,000 | 4,600 |
|
Total assets | 315,000 | 285,000 | 238,000 |
Stockholders equity | 25,000 | 26,000 | 28,000 |
14. The change in ROE from 2009 to 2010 is LEAST likely attributable to the change in the firm's
Net Profit Margin. | ||
Total Asset Turnover |
Financial Leverage |
15. The change in the Profit Margin from 2009 to 2010 can most likely be traced to a change in the firm's
Tax Burden. | ||
Interest Burden. |
EBIT Margin. |
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