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