Question

DuPont identity. For the firms in the popup Window

DuPont identity. For the firms in the popup Window, find the return on equity using the three components of the DuPont identity operating efficiency, as measured by the profit margin (net income sales); asset management efficiency, as measured by assoil turnover (sales local assets); and financial leverage, as measured by the equity multiplier (total assets/total equity). 

First, find the equity of each company.

 The equity for PepsiCo is _______ 

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Answer #1

Equity = Assets - Liabilities

Equity for PepsiCo = 77467 - 53078 = $24,389

Equity for Coca-Cola = 90015 - 56817 = $33,198

Equity for McDonald's = 36641 - 20659 = $15,982

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