Refer to the income statement for TJX Companies from E4-35, and balance sheet.

a. Compute the return on equity (ROE), FLEV and Spread for 2013.

b. Use RNOA from the Mid-Module Review, and the FLEV and Spread from part \(a\), to compute ROE.

Q4-35

Selected balance sheet and income statement information from General Electric Company and its two principal business segments (Industrial and Financial) for 2012 follows.

a. Compute times interest earned and the liabilities-to-equity ratio for 2012 for the two business segments (Industrial and Financial) and the company as a whole.

b. What is your overall assessment of the company's solvency? Explain. What differences do you observe between the two business segments? Do these differences correspond to your prior expectations given each company's business model?

c. Discuss the implications of the analysis of consolidated financial statements and the additional insight that can be gained from a more in-depth analysis of primary business segments.

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($ millions) Industrial segment. Financial segment Other...... General Electric Consolidated Pretax Interest Income Expense $16,852 7,955 (7,401) $17,406 $ 1,353 $106,698 11,697 456,626 (542) Total Liabilities $12,508 (6,466) $556,858 Stockholders' Equity $123,803 82,597 (77,930) $128,470 3