Selected balance sheet and income statement information for Facebook Inc. follows. $ millions Dec. 31, 2018...

  

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Selected balance sheet and income statement information for Facebook Inc. follows. $ millions Dec. 31, 2018 Dec. 31, 2017 Total assets $98,899 $86,089 Total liabilities 14,772 11,742 Sales 57,403 Net income 23,677 a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. Selected balance sheet and income statement information for Facebook Inc. follows. $ millions Dec. 31, 2018 Dec. 31, 2017 Total assets $98,899 $86,089 Total liabilities 14,772 11,742 Sales 57,403 Net income 23,677 a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage.

Answer rating: 100% (QA)

To compute the return on equity ROE and its DuPont components we need to use the following formulas ... View the full answer