Verify the DuPont Identity for Costco ROE

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Reference no: EM131814660

Find online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year 2015 (filed in October 2015).

a. Compute Costco's net profit margin, total asset turnover and equity multiplier.

b. Verify the DuPont Identity for Costco's ROE.

c. If Costco's managers wanted to increase its ROE by 1.6 percentage point, how much higher would their asset turnover need to be?

Reference no: EM131814660

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