Calculating and disaggregating rate of return on common shareholders' equity. Information taken from the annual reports of Circuit City, an electronic superstore retailer selling name-brand products, for three recent years appears below (amounts in millions):

a. Compute the rate of return on common shareholders' equity for each year.

b. Disaggregate the rate of return on common shareholders' equity into profit margin, total assets turnover, and leverage ratio components.

c. How has the profitability of Circuit City changed over the three years?

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Year 4 Year 5 Year 6 Revenues $7,029 $7,664 $8,871 Net Income 179 136 104 Average Total Assets. 2,265 2,804 3,156 Average Common Shareholders' Equity 971 1,339 1,672