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3. Use the following selected balance sheet and income statement data for Valero Energy Corporation (in $ millions) to compute a) return on equity, b)

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3. Use the following selected balance sheet and income statement data for Valero Energy Corporation (in $ millions) to compute a) return on equity, b) prot margin (PM), o) asset turnover (AT), and d) nancial leverage (FL) for scal 2016. Show that ROE = PM x AT x FL. (10%) (Millions of Dollars) 2016 2015 Operating revenues $75,659 $87,804 Interest expense 446 433 Net income attributable to Valero stockholders 2,289 3,990 Total assets 46,1 73 44,227 Total Valero stockholders' equity 20,024 20,527 Statutory tax rate 37% 37%

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