Question: Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). Net income $2,368 Net income attributable to Company shareholders 2,368

Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions).

Net income$2,368
Net income attributable to Company shareholders2,368
Net operating profit after tax (NOPAT)2,940
Net nonoperating expense (NNE)572
Average net operating assets (NOA)48,222
Average net nonoperating obligations (NNO)17,312
Average total equity30,910
Average equity attributable to Company shareholders30,711

Compute the following measures a through h.

a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders)
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer

%

b. RNOA = NOPAT/Average NOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%

c. Nonoperating return = ROE − RNOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%

d. NNEP = NNE/Average NNO
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%

e. Spread = RNOA − NNEP
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%

f. FLEV = Average NNO/Average total equity
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer

g. NCI ratio = (Net income attributable to Company shareholders/Net income)/(Average equity attributable to Company shareholders/Average total equity)
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer

h. ROE = (RNOA + (Spread × FLEV)) × NCI ratio
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%

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