E10-49B. (Learning Objective 6: Evaluating profitability) LaSalle Inns reported these figures for 20X7 and 20X6 (in millions):

Requirement 1. Compute LaSalle’s return on assets and return on ordinary shareholders’ equity for 20X7.
Do these rates of return suggest strength or weakness? Give your reason.

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A1 A Balance Sheet Total assets Ordinary share and additional paid-in capital Retained earnings Other equity Income Statement Operating income Interest expense Net income 16,020 C D 20X7 20X6 13,760 39 385 11,522 16,534 (2,961) (9,119) 4,025 3,818 214 274 1,533 1,549 123456780 9 10 11 12