DuPont Analysis For this questions you will be analyzing/comparing the returns earned at the two Blind Pig
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Question:
DuPont Analysis
For this questions you will be analyzing/comparing the returns earned at the two Blind Pig business locations in Champaign. Use the infromation below to fill in the DuPont table below (make sure you scroll to the right, if applicable, and complete all of the missing values), and provide brief responses to the follow up questions about asset and equity returns.
Total Debt | Debt-to-Equity Ratio (D/E) | |
Original Blind Pig | 200,000 | 0.80 |
Blind Pig Brewery | 400,000 | 1.50 |
Operating Profit Margin (OPM) | Asset Turnover Ratio (ATR) | Return on Assets (ROA) | Interest/Assets | Leverage Multiplier (LM) | Return on Equity | |
Original Blind Pig | 8.00% | 18.00% | 3.00% | |||
Blind Pig Brewery | 2.00 | 16.00% | 4.00% |
Which location (Original or Brewery) is earning a higher ROA and why? | |
ROA answer here: | |
Which location (Original or Brewery) is earning a higher ROE and why? | |
ROE answer here: |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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