Three companies have the following results during the recent period. K Net profit margin Total assets turnover Total assets/equity 0.04 2.20 2.40 Earnings/share Dividends/share L 0.06 2.00 2.20 a. Derive for each its return on equity based on the three DuPont c b. Given the following earnings and dividends, compute the estimat rate for each firm. K 275 1.25 M 0.10 1.40 1.50 L 3.00 1.00 M 4.50 1.00

Three companies have the following results during the recent period. K Net profit margin Total assets turnover Total assets/equity 0.04 2.20 2.40 Earnings/share Dividends/share L 0.06 2.00 2.20 a. Derive for each its return on equity based on the three DuPont c b. Given the following earnings and dividends, compute the estimat rate for each firm. K 275 1.25 M 0.10 1.40 1.50 L 3.00 1.00 M 4.50 1.00

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.3MBA

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