Using the annual report information available on each of the company's websites: compute the ROE for Yahoo and Google.
Please use the DuPont Method =(Net Profit Margin) x (Asset Turnover) x (Equity Multiplier) for Year End 2010 for each company.
Please show calculations.© BrainMass Inc. brainmass.com July 19, 2018, 2:12 am ad1c9bdddf
We note that
ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)
For Yahoo (figures in thousands)
Net profit = 1,231,663
Sales (aka Revenue) = ...
Calculating ROE Using DuPont Method