Question: 7. 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

7. 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/total equity). ROUND TO NEAREST MILLION DOLLARS

7. Find the return on equity using the three components of the

Financial Information ($ in millions, 2013) Company Sales Net Income PepsiCo $66,348 $6,617 Coca-Cola $46,748 $8,576 McDonald's $28,157 $5,896 Total Assets $77,366 $90,042 $36,633 Liabilities $53,186 $56,790 $20,532

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