A firm whose shares traded at two times their book value on June 30, 2020, had the following financial statements. Amounts are in millions of dollars. The firms marginal tax rate is 30%. There are no dirty-surplus income items in the equity statement.

A firm whose shares traded at two times their book value on June 30, 2020, had the following financial statements. Amounts are in millions of dollars. The firm's marginal tax rate is 30%. There are no dirty-surplus income items in the equity statement. Assets 2020 2020 2019 Operating cash Short-term investments Accounts receivable Inventories Property and plant (net) Balance Sheet 30 June 2020 2019 Liabilities and Shareholders' Equity $90 Accounts payable 120 Long-term debt 250 Common equity 400 520 $1.380 $100 150 350 280 600 $1,480 $200 410 870 $195 410 775 $1,480 $1,380 Income Statement Year ended 30 June 2020 Sales Interest income Operating expenses Interest expense Tax expense Net income $3,000 25 $2,800 75 40 (2,915) $110 31.380 Income Statement Year ended 30 June 2020 Sales Interest income Operating expenses Interest expense Tax expense Net income $3,000 25 $2,800 75 40 (2,915) $110 Required: (a) Calculate the following measures (NOTE: use the average amounts for balance sheet items): i. Return on common equity (3 marks) ii. Return on net operating assets. (3 marks) iii. Financial leverage (3 marks) iv. Operating spread