Refer to the financial information of 3.M Company in P4-36 to answer the following requirements. section*{Required} b.

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Refer to the financial information of 3.M Company in P4-36 to answer the following requirements.

\section*{Required}

b. Assume that its return on equity (ROE) for 2007 is $37.74 \%$ and its retum on net operating assets (RNOA) is $30.15 \%$. Confirm computations to yield the relation: $\mathrm{ROE}=\mathrm{RNOA}+$ (FLEV $\times$ Spread).

c. What do your computations of the nonoperating return imply about the company's use of borrowed funds?

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Financial Accounting For MBAs

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Refer to the financial information of 3.M Company in P4-36 to answer the following requirements. section*{Required} b.

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Financial Accounting For MBAs

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