1.Compute and Interpret 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).

($millions)

2015

2014

Sales

$31,051

Net income, consolidated

5,320

Net income attributable to 3M shareholders

5,312

Assets

33,018

$31,509

Total equity

11,747

13,142

Equity attributable to 3M shareholders

11,708

13,109

a.Compute return on equity (ROE).

Please show your computation. Round answer to two decimal places (ex: 0.12345 = 12.35%)

ROE =

b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.

Round profit margin totwo decimal places(ex: 0.12345 = 12.35%)

Round asset turnover and financial leverage tothree decimal places.

Profit margin=

Asset turnover =

Financial leverage =

a 7 AaBbCcDdEe AaBbCcDdEe AaB A Normal No Spacing Hea 3. Compute and Interpret 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). ($millions) 2015 2014 Sales $31,051 Net income, consolidated 5,320 Net income attributable to 3M shareholders 5,312 Assets 33,018 $31,509 Total equity 11,747 13,142 Equity attributable to 3M shareholders 11,708 13, 109 a. Compute return on equity (ROE). Please show your computation. Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE = 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 =