41. For fiscal year 2015, Costco Wholesale Corporation (COST) had a net profit margin of 2.05%, asset turnover of 3.48, and a book equity multiplier of 3.15. a. Use this data to compute Costco's ROE...

41. For fiscal year 2015, Costco Wholesale Corporation (COST) had a net profit margin of 2.05%,<br>asset turnover of 3.48, and a book equity multiplier of 3.15.<br>a. Use this data to compute Costco's ROE using the DuPont Identity.<br>b. If Costco's managers wanted to increase its ROE by one percentage point, how much higher<br>would their asset turnover need to be?<br>c. If Costco's net profit margin fell by one percentage point, by how much would their asset<br>turnover need to increase to maintain their ROE?<br>

Extracted text: 41. For fiscal year 2015, Costco Wholesale Corporation (COST) had a net profit margin of 2.05%, asset turnover of 3.48, and a book equity multiplier of 3.15. a. Use this data to compute Costco's ROE using the DuPont Identity. b. If Costco's managers wanted to increase its ROE by one percentage point, how much higher would their asset turnover need to be? c. If Costco's net profit margin fell by one percentage point, by how much would their asset turnover need to increase to maintain their ROE?

Jun 06, 2022

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41. For fiscal year 2015, Costco Wholesale Corporation (COST) had a net profit margin of 2.05%, asset turnover of 3.48, and a book equity multiplier of 3.15. a. Use this data to compute Costco's ROE...

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