Question 2 (performance evaluation, DuPont method): Use the following data for Apple and Dell for year 2008 (real data, in $ million):

	Apple	Dell
Profit (operating income)	$6,275	$3,190
Sales revenue	$32,479	$61,101
Investment (total assets)	$32,460	$27,031

Required: a) compute the ROI for each company. Apple ROI = ______ % (if you get say 12.5%, enter 12.5, not 12.5% or 0.125) Dell ROI = ______ % b) use the DuPont method to decompose ROI into ROI = profit margin * asset turnover. In other words, compute profit margin and asset turnover for each company: Apple profit margin = ______ , asset turnover = ______ (Enter both as a fraction of 1, not as percentage. I.e., if the profit margin is 0.045 (4.5%) and asset turnover is 3.42 (342%), enter 0.045 and 3.42) Dell profit margin = ______ , asset turnover = ______ If you multiply profit margin * asset turnover, you should get the ROI from part (a) c) Which company has higher profit margin? Does it make sense, based on what you know about Apple and Dell?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ .

d) Which company has higher asset turnover? Does it make sense, based on what you know about Apple and Dell? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ .