Use the information below for 2018 for 3M Company to answer the requirements ($ millions) 2018 2017
Sales $32,765
Net income, consolidated 5,363
Net income attributable to 3M shareholders 5,349
Assets 36,500 $37,987
Total equity 9,848 11,622
Equity attributable to 3M shareholders 9,796 11,563

a. Compute return on equity (ROE) from the perspective of a 3M shareholder.
Round answer to two decimal places (ex: 0.12345 = 12.35%)
Answer
50.08
%

b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective).

Round profit margin to two decimal places (ex: 0.12345 = 12.35%)
Round asset turnover and financial leverage to three decimal places.
Profit margin Answer
16.37
%
Asset turnover Answer
0.88

Financial leverage Answer
3.49
c. Compute ROA
Round answer to two decimal places (ex: 0.12345 = 12.35%)
Answer
14.4
%

d. Compute adjusted ROA (assume a statutory tax rate of 22% and pretax net interest expense of $207).
Round answer to two decimal places (ex: 0.12345 = 12.35%)
Answer
14.28
%