Compute Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer...

60.1K

Verified Solution

Question

Accounting

image
Compute 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). (Smillions) 2015 2014 Sales $31.718 Net income consolidated 5,787 Net income attributable to 3M shareholders 5,779 Assets 33,395 $31,886 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%) 46.57 % 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 18.22 % Asset turnover 0.972 Financial leverage 1.85 X c. Compute ROA. Round answer to two decimal places (ex: 0.12345 - 12.35%) ROA 17.7 96 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 - 12.3596) 17.94

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