23. Freedom Company reported net income for 2010 for $2,031 million on sales of $25,600 million. Interest expense for 2010 was $235 million, and minority interest was $344 million for 2010. The income tax rate is 40 percent. Total assets were $10,800 million at the beginning of 2010 and $14,874 million at the end of 2010. Compute the rate of ROA for 2010 and disaggregate ROA into profit margin for ROA and asset turnover components.

24. Carridine Company reported net income of $1,903 on revenues of $55,618 for Year 4. Interest expense totaled $459, and preferred dividends totaled $13.5. Average total assets for Year 4 were $17,500. The income tax rate is 40 percent. Average preferred shareholders equity totaled $250, and average common shareholders equity totaled $7,500. Assume that all the following amounts are in thousands.

Required:

a. Compute the rate of ROA. Disaggregate ROA into profit margin for ROA and assets turnover components.

b. Compute the rate of ROCE. Disaggregate ROCE into profit margin for ROCE, assets turnover, and capital leverage ratio components.

c. Calculate the amount of net income to common shareholders derived from the excess return on creditors capital, the excess return on preferred shareholders capital, and the return on common shareholders capital.