DuPont identity. For the firms in the popup window, LOADING... , 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 $nothing million. (Round to the nearest million dollars.) Help Me Solve ThisView an Example Get More Help Clear All Check Answer Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities PepsiCo $66,352 $6,769 $77,328 $53,162 Coca-Cola $46,818 $8,528 $90,042 $56,761 McDonald's $28,089 $5,826 $36,544 $20,553 PrintDone
DuPont identity. For the firms in the popup window, LOADING... , 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 $nothing million. (Round to the nearest million dollars.) Help Me Solve ThisView an Example Get More Help Clear All Check Answer Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities PepsiCo $66,352 $6,769 $77,328 $53,162 Coca-Cola $46,818 $8,528 $90,042 $56,761 McDonald's $28,089 $5,826 $36,544 $20,553 PrintDone
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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).
LOADING...
,First, find the equity of each company.
The equity for PepsiCo is
$nothing
million. (Round to the nearest million dollars.)Help Me Solve ThisView an Example
Get More Help
Clear All
Check Answer
Financial Information ($ in millions, 2013)
|
||||
Company
|
Sales
|
Net Income
|
Total Assets
|
Liabilities
|
PepsiCo
|
$66,352
|
$6,769
|
$77,328
|
$53,162
|
Coca-Cola
|
$46,818
|
$8,528
|
$90,042
|
$56,761
|
McDonald's
|
$28,089
|
$5,826
|
$36,544
|
$20,553
|
PrintDone
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