Question: For the following firms, find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin
For the following firms, 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 asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/totalequity).
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Financial Information ($ in millions, 2009) Company PepsiCo Coca-Cola Starbucks Sales Net Income Total Assets Liabilities $43,251 $31,994 $10,383 $5,142 $5,807 S 315 $35,994 $40,519 5,673 $23,888 $20,047 3,182
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First find the equity of each company ie Total Assets less Total Liabilities Pepsis Equity 35994 ... View full answer
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