This exercise is based on the Peabody Toys, Inc., data from Exercise 5-22.
Required:
1. Determine the following components of the DuPont framework for 2011:
a. Profit margin on sales.
b. Asset turnover.
c. Equity multiplier.
d. Equity multiplier.
2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct.
