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DRQ #1 AGEC 317 5pts September 3, 2013. Citigroup, Inc. in 2007 had sales revenue of $96.431 billion, business profits of $21.185 billion, and a net worth of $118.856 billion. (½ pt ) (a) What was the profit margin for Citigroup, Inc in 2007?
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DRQ #1AGEC 317 5pts September 3, 2013 • Citigroup, Inc. in 2007 had sales revenue of $96.431 billion, business profits of $21.185 billion, and a net worth of $118.856 billion. (½ pt) (a) What was the profit margin for Citigroup, Inc in 2007? (½ pt) (b) What was the ROE for Citigroup, Inc in 2007? (½ pt) (c) Interpret the ROE figure obtained in (b). • (1pt) Suppose that McDonald’s Corporation anticipates profits to be $4 billion in 2013 and $5 billion in 2014. Calculate the value of McDonald’s Corporation today. Assume the discount rate is four percent. • (1pt) (a) Besides the discount rate, what two factors are involved in the calculation of the value of any firm? (½ pt) (b) The discount rate is a measure of to the firm. • (1pt) Suppose that + . Solve for and .