Adjusting for Negative Equity Phillip Morris reported the following information in its 2018 Form 10-K.

$ millions	Dec. 31, 2018	Dec. 31, 2017
Stockholders' (Deficit) Equity
Common stock, no par value (2,109,316,331 shares issued in 2018 and 2017)	$0	$0
Additional paid-in capital	1,939	1,972
Earnings reinvested in the business	29,773	28,665
Accumulated other comprehensive losses	(10,111)	(8,535)
Total stockholders' equity before treasury stock	21,601	22,102
Less: cost of repurchased stock (554,736,610 and 556,098,569 shares in 2018
and 2017, respectively)	35,301	35,382
Total PMI stockholders' deficit	(13,700)	(13,280)
Noncontrolling interests	1,720	1,856
Total stockholders' deficit	$(11,980)	$(11,424)
Net earnings	$8,286
Net earnings attributable to noncontrolling interests	375
Net earnings attributable to PMI	$7,911

a. Compute ROE for 2018 using the equity numbers as reported. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%). Answer% How do you interpret this ratio? Ratio is high, Ratio is low, Ratio is at an average level Ratio is not interpretable b. Add back treasury shares to adjust for the companys negative equity. Recompute ROE for 2018. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%). Answer% Does the adjusted ratio better captures the companys performance during 2018? Answer