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Problem 14-12 Use the DuPont system and the following data to find return on equity. (Do...
Mark for Review What's This? 1 Points Question 3 of 20 An analyst applied the DuPont...
Mark for Review What's This? 1 Points Question 3 of 20 An analyst applied the DuPont System to the following data for a company: Following are the financial details: (1) Equity turnover 4.2,. (2) Net profit margin - 5.5 % , ( 3) Asset turnover 2.0, (4) Dividend payout ratio= 31.8 %. The company's return on equity is closest to: (HINT: Equity turnover ratio- Asset turnover ratiox Leverage Ratio) OA 1.3% OB.11.0 % OC 23.1% OD. 63.6 % Reset Selection
14. Use 2 steps DuPont method to calculate Rate of Return on equity for a business...
14. Use 2 steps DuPont method to calculate Rate of Return on equity for a business from the given information. Ms. Pattanaik Profit Margin (net income/sales) 25% Debt to asset ratio 30% Return on Asset 25% Asset to Equity ratio 2.0 Rate of Return on equity =
the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net...
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
Under the DuPont system, the return on assets is equal to Select one: a. the product...
Under the DuPont system, the return on assets is equal to Select one: a. the product of the gross profit margin and inventory turnover b. the sum of the debt-equity ratio and the return on sales c. the product of the return on sales and total asset turnover d. the product of the return on sales, total asset turnover, and equity multiplier e. none of the above
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to...
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). (5 millions) 2018 2017 Sales $32.765 Net income, consolidated 5.363 Net income attributable to 3M shareholders 5.349 Assets 36,500 $37,087 Total equity 9,848 11.622 Equity attributable to 3M shareholders 9,796 11.563 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.35%) 37.15 X 96 b....
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to...
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). ($ millions) 2018 2017 Sales $32,765 Net income, consolidated 5,363 Net income attributable to 3M shareholders 5,349 Assets 36,500 $37,987 Total equity 9,848 11,622 Equity attributable to 3M shareholders 9,796 11,563 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) 54.6 X % b....
14. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company’s financial performance, as measur...
14. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company’s financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm’s ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The...
Thanks. Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company...
Thanks.
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). ($millions) 2015 2014 Sales $30,674 Net income, consolidated 5,056 Net income attributable to 3M shareholders 5,048 Assets 32,898 $31,389 Total equity 11,747 Equity attributable to 3M shareholders 11,708 13,109 13,142 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) X % b. Compute...
DuPont system of analysis. Use the following 2016 financial information for ATT and Verizon to conduct...
DuPont system of analysis. Use the following 2016 financial
information for ATT and Verizon to conduct a DuPoint system of
analysis for each company,
a. Which company has the higher net profit? Higher asset
turnover?
b. Which company has the higher ROA? The higher ROE?
Sales Earnings available for common stockholders Total assets Stockholders' equity ATT $ 163,900 13,233 403,821 124,410 Verizon $126,180 13,908 244,380 24,232 a. Which company has the higher net profit margin? Higher asset turnover? b. Which...
Return on Investment, DuPont Analysis and Financial Leverage The following table presents selected 2016 financial information...
Return on Investment, DuPont Analysis and Financial Leverage The following table presents selected 2016 financial information for Sunder Company Sunder Company Selected 2016 Financial Data Balance Sheet: Average total assets $1,000,000 Average total liabilities 500,000 Average stockholders' equity 500,000 Income Statement Sales revenue $1,000,000 Earnings before interest (net of tax) 20,000 Interest expense (net of tax) 15,000 5,000 Net income Round answers to one decimal place (i.e., 0.0025 = 0.3%). Use negative signs with answers, when appropriate. a. Compute Sunder's...
Mark for Review What's This? 1 Points Question 3 of 20 An analyst applied the DuPont System to the following data for a company: Following are the financial details: (1) Equity turnover 4.2,. (2) Net profit margin - 5.5 % , ( 3) Asset turnover 2.0, (4) Dividend payout ratio= 31.8 %. The company's return on equity is closest to: (HINT: Equity turnover ratio- Asset turnover ratiox Leverage Ratio) OA 1.3% OB.11.0 % OC 23.1% OD. 63.6 % Reset Selection
14. Use 2 steps DuPont method to calculate Rate of Return on equity for a business from the given information. Ms. Pattanaik Profit Margin (net income/sales) 25% Debt to asset ratio 30% Return on Asset 25% Asset to Equity ratio 2.0 Rate of Return on equity =
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). (5 millions) 2018 2017 Sales $32.765 Net income, consolidated 5.363 Net income attributable to 3M shareholders 5.349 Assets 36,500 $37,087 Total equity 9,848 11.622 Equity attributable to 3M shareholders 9,796 11.563 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 - 12.35%) 37.15 X 96 b....
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). ($ millions) 2018 2017 Sales $32,765 Net income, consolidated 5,363 Net income attributable to 3M shareholders 5,349 Assets 36,500 $37,987 Total equity 9,848 11,622 Equity attributable to 3M shareholders 9,796 11,563 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) 54.6 X % b....
Thanks.
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). ($millions) 2015 2014 Sales $30,674 Net income, consolidated 5,056 Net income attributable to 3M shareholders 5,048 Assets 32,898 $31,389 Total equity 11,747 Equity attributable to 3M shareholders 11,708 13,109 13,142 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) X % b. Compute...
DuPont system of analysis. Use the following 2016 financial
information for ATT and Verizon to conduct a DuPoint system of
analysis for each company,
a. Which company has the higher net profit? Higher asset
turnover?
b. Which company has the higher ROA? The higher ROE?
Sales Earnings available for common stockholders Total assets Stockholders' equity ATT $ 163,900 13,233 403,821 124,410 Verizon $126,180 13,908 244,380 24,232 a. Which company has the higher net profit margin? Higher asset turnover? b. Which...
Return on Investment, DuPont Analysis and Financial Leverage The following table presents selected 2016 financial information for Sunder Company Sunder Company Selected 2016 Financial Data Balance Sheet: Average total assets $1,000,000 Average total liabilities 500,000 Average stockholders' equity 500,000 Income Statement Sales revenue $1,000,000 Earnings before interest (net of tax) 20,000 Interest expense (net of tax) 15,000 5,000 Net income Round answers to one decimal place (i.e., 0.0025 = 0.3%). Use negative signs with answers, when appropriate. a. Compute Sunder's...
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