Find online the annual 10-K report for Green Mountain Coffee Roasters (GMCR) for its 2012 fiscal year,
Question:
Find online the annual 10-K report for Green Mountain Coffee Roasters (GMCR) for its 2012 fiscal year, filed in September 2012.
a. Compute Green Mountain's net profit margin, total asset turnover, and equity multiplier.
b. Verify the DuPont Identity for Green Mountain's ROE.
c. If Green Mountain's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be?
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. DuPont Identity
The DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780133507676
3rd Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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