1.Calculate the ROE for Consolidated Ace, Aces shareholders, and for the non-controlling interest for 2019. Explain what the differences in ROE imply.

2.You did some more research and found the following. Ace has only one consolidated subsidiary, Beta Corporation where it acquired a 50% stake in 2017. You also note that Ace has $ 120 million of goodwill on its balance sheet related to this acquisition. You wonder whether the lower ROE has something to do with the existence of goodwill. Can you verify whether it is goodwill that is causing the discrepancy in the ROEs between Ace and its controlling interest?

Excerpts from the Income Statement and Shareholder's Equity for 2019 section of Ace Corporation is given below (in $ million): 2018 Income Statement Income before non-controlling interest Less Income belonging to non-controlling interest Net income after non-controlling interest 2019 235 15 220 Balance Sheet Shareholder equity Share Capital Retained earnings Non-controlling interest 990 1225 200 2415 990 1115 185 2290 Nathan is an analyst with a Wall Street firm who is researching Ace Corp. There is one issue that has puzzled Nathan and he needs your expertise in figuring it out. According to him, the ROE on the non- controlling interest appears to be lower than that for Ace's own business. He is puzzled by how this could happen. it out. According to himthe ROE on the mom