The following table contains financial statement information for Wal-Mart Stores, Inc.

($ millions)	Total Assets	Net Income	Sales	Equity
2011	$180,663	$16,389	$421,849	$68,542
2010	170,407	14,370	408,085	70,468
2009	163,429	13,381	404,254	65,285

Compute the return on equity (ROE) for 2010 and 2011.
1) What trend, if any, is evident? How does Wal-Mart Stores, Inc's ROE compare with the approximately 20% median ROE for companies in the Dow Jones Industrial average for 2011?

a) Wal-Mart Stores, Inc's ROE decreased from 2010 to 2011 and is similar to the median for other companies in the Dow Jones average.

b) Wal-Mart Stores, Inc's ROE increased from 2010 to 2011 and is slightly above the median for other companies in the Dow Jones average.

c) Wal-Mart Stores, Inc's ROE increased from 2010 to 2011 and is similar to the median for other companies in the Dow Jones average.

d) Wal-Mart Stores, IncWal-Mart Stores, Inc's ROE decreased from 2010 to 2011 but still exceeds the median for other companies in the Dow Jones average.

Compute the return on assets (ROA) for 2010 and 2011.

2) What trend, if any, is evident? How does Wal-Mart's ROA compare with the approximately 6.7% median ROA for companies in the Dow Jones Industrial average for 2011?

a) Wal-Mart Stores, Inc's ROA increased from 2010 to 2011 and is above the median for other Dow Jones companies.

b) Wal-Mart Stores, Inc's ROA decreased from 2010 to 2011 and is similar to the median for other Dow Jones companies.

c) Wal-Mart Stores, Inc's ROA increased from 2010 to 2011 and is slightly below the median for other Dow Jones companies.

d) Wal-Mart Stores, Inc's ROA decreased from 2010 to 2011 but still exceeds the median for other Dow Jones companies.

3. Which of the following factors might allow a company like Wal-Mart to realize above-average returns?

a) Wal-Mart Stores, Inc operates with more assets and equity than the average company.

b) Wal-Mart Stores, Inc's advertising budget is substantial, thus allowing it to generate a higher level of sales.

c) Wal-Mart has considerable market power over suppliers as a result of its considerable size, which may result in product cost savings. Wal-Mart is also able to use its considerable advertising budget to its advantage.

d) Wal-Mart Stores, Inc's sales level is greater than the typical company.