Question: Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). Compute the following

 Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and

Directly Compute Nonoperating Return with Noncontrolling Interest Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows (\$ millions). Compute the following measures a through h. a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders) Net income attributable to Company shareholders Average equity attributable to Company shareholders b. RNOA= NOPAT/Average NOA c. Nonoperating return =ROERNOA d. NNEP = NNE/Average NNO e. Spread = RNOA NNEP f. FLEV = Average NNO/ Average total equity g. NCI ratio = (Net income attributable to Company shareholders/Net income)/(Average equity attributable to Company shareho Net income attributable to Company shareholders/Net income Average equity attributable to Company shareholders/Average total h. ROE=(RNOA+( Spread FLEV))NCI ratio. Final ROE number will be off because of rounding ROE may be different from part a. due to rounding

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!