(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory...
Question:
(a) Compute net operating profit after tax (NOPAT) for 2010. Assume that the combined federal and statutory rate is: 37.0%. (Hint: Treat equity in income of affiliates as operating. Round your answer to the nearest whole number.)
2010 NOPAT = ($ millions)
(b) Compute net operating assets (NOA) for 2010 and 2009. (Hint: Treat the Equity and Other Investments and the Long-Term Liabilities as operating.)
2010 NOA = ($ millions)
2009 NOA = ($ millions)
(c) Compute Best Buy's RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2010. (Do not round until final answer. Round two decimal places. Do not use NOPM x NOAT to calculate RNOA.)
2010 RNOA = %
2010 NOPM = %
2010 NOAT =
(d) Compute net nonoperating obligations (NNO) for 2010 and 2009.
2010 NNO = ($ millions)
2009 NNO = ($ millions)
(e) Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.)
2010 ROE = %
(f) Infer the nonoperating return component of ROE for 2010.
2010 nonoperating return = %
(g) Which of the following statements reflects the best inference we can draw from the difference between Best Buy's ROE and RNOA?
Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
ISBN: 978-1118630914
1st edition
Authors: Robert A.Weigand