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 :) DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, asmeasured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, asmeasured 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 millionData TableNext, 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.)CompanySalesNet IncomeTotal AssetsLiabilitiesThe profit margin for McDonald's is 20.85 %. (Round to two decimal places.PepsiCo$53,166$77,459$89,909$66,383$6,684Coca-Cola$46,734$56,863$20,673The asset turnover for PepsiCo is 0.8570'. (Round to four decimal places.)$8,463McDonald's$28,078$5,853$36,672The asset turnover for Coca-Cola is 0.5198. (Round to four decimal places.The asset turnover for McDonald's is 0.7657. (Round to four decimal placesPrintDoneThe equity multiplier for PepsiCo is 3.1885. (Round to four decimal places.) DuPont identity. For the firms in the popup window, , find the return on equity using the three components of the DuPont identity: operating efficiency, asmeasured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, asmeasured by the equity multiplier (total assets/total equity).Data TableClick on the following Icon in order to past this table's content into a spreadsheet.Financial Information ($ in millions, 2013)CompanySalesNet IncomeTotal AssetsLiabilities$6,325PepsiCoCoca-Cola$6,727$77,499$53,159$46,707$8,442$90,044$56,747McDonald's$28,050$5,838$36,559$20,692

Return on equity = Profit Margin*Assets Turnover*Financial Leverage Equity = Total assets -…

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

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 8EP

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