$44$

Example $2\mathrm{.}8$a: DuPont Analysis

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Compute the respective ROEs of Campbell's and General Mills.

Determine how much General Mills would need to increase its equity multiplier to match Campbell's ROE.

$\backslash$table$[[,$Profit Margin,Asset Turnover,Equity Multiplier$],[$Campbell$\text{'}$s$,5\mathrm{.}7\%,0\mathrm{.}97,6\mathrm{.}84],[$General Mills,$10\mathrm{.}4\%,0\mathrm{.}78,2\mathrm{.}97]]$

$$

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