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). i Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities PepsiCo $66,325 $6,727 $77,499 $53,159 Coca-Cola $46,707 $8,442 $90,044 $56,747 McDonald's $28,050 $5,838 $36,559 $20,692
DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity). i Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities PepsiCo $66,325 $6,727 $77,499 $53,159 Coca-Cola $46,707 $8,442 $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: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).
First, find the equity of each company.
The equity for PepsiCo is $ 24,293 million. (Round to the nearest million dollars.)
The equity for Coca-Cola is $ 33,046 million. (Round to the nearest million dollars.)
The equity for McDonald's is $ 15,999' million. (Round to the nearest million
Data Table
Next, calculate the three components of the DuPont identity.
The profit margin for PepsiCo is 10.07 %. (Round to two decimal places.)
Click on the following Icon in order to past this table's content into a spreadsheet.
Financial Information ($ in millions, 2013)
The profit margin for Coca-Cola is 18.11 %. (Round to two decimal places.)
Company
Sales
Net Income
Total Assets
Liabilities
The profit margin for McDonald's is 20.85 %. (Round to two decimal places.
PepsiCo
$53,166
$77,459
$89,909
$66,383
$6,684
Coca-Cola
$46,734
$56,863
$20,673
The asset turnover for PepsiCo is 0.8570'. (Round to four decimal places.)
$8,463
McDonald's
$28,078
$5,853
$36,672
The asset turnover for Coca-Cola is 0.5198. (Round to four decimal places.
The asset turnover for McDonald's is 0.7657. (Round to four decimal places
Print
Done
The equity multiplier for PepsiCo is 3.1885. (Round to four decimal places.)
Transcribed Image Text:DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, as
measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as
measured by the equity multiplier (total assets/total equity).
Data Table
Click on the following Icon in order to past this table's content into a spreadsheet.
Financial Information ($ 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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