1. Selected financial information from Syntex Corporation is reproduced below:

1. NOPAT turnover (average NOA equals ending NOA) is two.

2. NOPAT turnover margin equals 5%.

3. Leverage ratio (average NFO/average common equity) is 1.786m and the Spread is 4.4%.

Required;

a. Compute return on net operating assets (RNOA).

b. Compute return on common equity using its three major components.

c. Analyze the disaggregation of return on common equity. What is the "leverage advantage (in percent return) accruing to common equity"?

(Points : 10)