Dupont framework

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1. EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M. What is the percent change in the numerator of the cash coverage ratio? What is the approximate percent change in the cash coverage ratio? What is the precise percent change in the cash coverage ratio?

2. Assume the following: Sales = $400M; Net Income = $60M; TA = $350M; and there is $0.50 in total debt per dollar of total equity. According to the DuPont framework, ROE would be approximately_______?

Reference no: EM131082687

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