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Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Total

Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows.

$ millions Jan. 31, 2016 Feb. 01, 2015
Total assets $42,949 $40,346
Total liabilities 36,318 30,709
Sales 89,234
Net income 7,320

Round answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: Answer% ROA: Answer% Financial leverage: Answer

b. Disaggregate ROA in to profitability and productivity components. Profit margin Answer% Asset turnover Answer

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