Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company...

80.2K

Verified Solution

Question

Accounting

image

Compute and Interpret 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). ($ millions) 2015 2014 Sales $31,385 Net income, consolidated 5,554 Net income attributable to 3M shareholders 5,546 Assets 33,139 $31,630 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%) 47.37 X % 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 17.67 % Asset turnover 94.707 X Financial leverage 0 X C. Compute ROA. Round answer to two decimal places (ex: 0.12345 = 12.35%) ROA 0 X % 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 = 12.35%) 0 X %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students