Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for...
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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 9,848 11,622 Equity attributable to 3M shareholders 9,796 11,563 Total equity a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) 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 % Asset turnover Financial leverage c. Compute ROA Round answer to two decimal places (ex: 0.12345 = 12.3596) d. Compute adjusted ROA (assume a statutory tax rate of 22% and pretax net interest expense of $207). Round answer to two decimal places (ex: 0.12345 = 12.3596)
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