C) 2.3% D) 3.5% E) 3.8% Answer: A Comment: ROA = ROA Year 1 = = 7.1% ROA Year 2 = = 3.8% Change = 3.8% - 7.1% = -3.3% Diff: 2 Section: 3 AACSB: Analytical Skills Learning Outcome: F-02: Analyze the major types of financial statements 41) Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Year 1 Year 2 Revenues 2,429,462 3,776,322 COGS 1,537,623 2,414,530 Depreciation 121,091 230,299 SG&A 619,143 833,208 EBIT 151,605 298,285 Interest Expense -14,403 49,732 income 32,005 8,047 Pre-Tax Income 198,013 256,600 Income Tax 75,049 94,947 Net Income 122,964 161,653 Shares outstanding 36,902 36,140 Earnings per $3.33 $4.47 Dividends per common share $0.80 $0.82 Referring to the Molson Coors financial statements, what is the Equity Multiplier from the Du Pont equation (1 + D/E) in Year 2? A) 2.41 B) 3.95 C) 4.05 D) 4.38 E) 4.58 Answer: D Comment: 1 + D/E = 1 + = 4.38 Diff: 2 Section: 3 AACSB: Analytical Skills Learning Outcome: F-02: Analyze the major types of financial statements 42) Income Statement
C) 2.3% D) 3.5% E) 3.8% Answer: A Comment: ROA = ROA Year 1 = = 7.1% ROA Year 2 = = 3.8% Change = 3.8% - 7.1% = -3.3% Diff: 2 Section: 3 AACSB: Analytical Skills Learning Outcome: F-02: Analyze the major types of financial statements 41) Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Year 1 Year 2 Revenues 2,429,462 3,776,322 COGS 1,537,623 2,414,530 Depreciation 121,091 230,299 SG&A 619,143 833,208 EBIT 151,605 298,285 Interest Expense -14,403 49,732 income 32,005 8,047 Pre-Tax Income 198,013 256,600 Income Tax 75,049 94,947 Net Income 122,964 161,653 Shares outstanding 36,902 36,140 Earnings per $3.33 $4.47 Dividends per common share $0.80 $0.82 Referring to the Molson Coors financial statements, what is the Equity Multiplier from the Du Pont equation (1 + D/E) in Year 2? A) 2.41 B) 3.95 C) 4.05 D) 4.38 E) 4.58 Answer: D Comment: 1 + D/E = 1 + = 4.38 Diff: 2 Section: 3 AACSB: Analytical Skills Learning Outcome: F-02: Analyze the major types of financial statements 42) Income Statement