17. The DuPont formula defines the net return on shareholders’ equity as a function of the following components:

• Operating margin.

• Asset turnover.

• Interest burden.

• Financial leverage.

• Income tax rate.

Using only the data in Table 19H:

a. Calculate each of the five components listed above for 2005 and 2009, and calculate the return on equity (ROE) for 2005 and 2009, using all of the five components.

b. Briefly discuss the impact of the changes in asset turnover and financial leverage on the change in ROE from 2005 to 2009.