DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity). O Data Table Click on the following Icon in order to past this table's content into a spreadsheet. Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities $6,727 $8,442 $77,499 PepsiCo Coca-Cola $66,325 $53,159 $46,707 $90,044 $56,747 McDonald's $28,050 $5,838 $36,559 $20,692
DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity). O Data Table Click on the following Icon in order to past this table's content into a spreadsheet. Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities $6,727 $8,442 $77,499 PepsiCo Coca-Cola $66,325 $53,159 $46,707 $90,044 $56,747 McDonald's $28,050 $5,838 $36,559 $20,692
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Chapter 14, Question 5. This is part of the question. Am asking another question on Bartleby for the second part. Attached is a similar question with answers. Please answer the new question in the same format :)
Transcribed Image Text:The equity multiplier for Coca-Cola is 2.7207. (Round to four decimal place
Data Table
The equity multiplier for McDonald's is 2.2921 . (Round to four decimal place
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Financial Information ($ in millions, 2013)
Last, use the three components of the DuPont identity to find the ROE.
The ROE for Pepsico is 27.52 %. (Round to two decimal places.)
Company
Sales
Net Income
Total Assets
Liabilities
The ROE for Coca-Cola is 25.61 %. (Round to two decimal places.)
Pepsico
$66.383
$6,684
$77,459
$53,166
Coca-Cola
$46,734
$8,463
$89,909
$56,863
The ROE for McDonald's is 36.59 %. (Round to two decimal places.)
McDonald's
$28,078
$5,853
$36,672
$20,673
"While McDonald's is the most operationally efficient and Pepsi the most effic
a very high financial leverage strategy, using debt and not shareholder earnin
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Transcribed Image Text:DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, as
measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as
measured by the equity multiplier (total assets/total equity).
Data Table
Click on the following Icon in order to past this table's content into a spreadsheet.
Financial Information ($ in millions, 2013)
Company
Sales
Net Income
Total Assets
Liabilities
$6,325
PepsiCo
Coca-Cola
$6,727
$77,499
$53,159
$46,707
$8,442
$90,044
$56,747
McDonald's
$28,050
$5,838
$36,559
$20,692
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