Deere & Co. manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere & Co.’s credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except pershare amounts):

1. Calculate the following ratios for each year:
a. Rate earned on total assets
b. Rate earned on stockholders’ equity
c. Earnings per share
d. Dividend yield
e. Price-earnings ratio
2. What is the ratio of average liabilities to average stockholders’ equity for Year 3?
3. Based on these data, evaluate Deere & Co.’sperformance.

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Net income (loss) Preferred dividends Interest expense Shares outstanding for Year 3 Year2 Year 1 $1,865 $874$2,053 s0.00 so.00 $0.0 $811 $1,042 $1,137 423 431 $1.16 1.12 $1.06 $42,200 $39,934$38,655 $5,555 $5,676 $6,844 $60.95 $47.06 $58.01 424 computing earnings per share Cash dividend per share Average total assets Average stockholders' equity Average stock price per share