Question: Compute Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a
Compute 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) (Smillions) Sales Net income, consolidated Net income attributable to 3M shareholders Assets 2015 2014 $29.874 4.496 4,488 32,538 $31,029 Total equity 11,747 13142 Equity attributable to 3M shareholders 11,708 13.109 a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 12.35%) 37.17 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 15.5 Asset turnover 93.992 Financial leverage 2.554 C 10:49 a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) 37.17 * % 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 15,5 * % Asset turnover 93.992 Financial leverage 2.554 c. Compute ROA. Round answer to two decimal places (ex: 0.12345 - 12.35%) ROA 14.14 d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round answer to two decimal places (ex: 0.12345-12.35%) 8.67 * %
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