Question
Balero Energy, a petroleum company, reported net income (amounts in millions) of $1,976.5 on revenues of $58,792.6 for Year 4. Interest expense totaled$364.9, and preferred
Balero Energy, a petroleum company, reported net income (amounts in millions) of $1,976.5 on revenues of $58,792.6 for Year 4. Interest expense totaled$364.9, and preferred dividends totaled $12.2. Average total assets for Year 4 were $17,525.9. The income tax rate is 35%. Average preferred shareholders equity totaled $202.9, and average common shareholders equity totaled $6,534.0. Compute the following for Year 4:
(a) 1. Return on Assets (ROA) 2. Profit Margin for ROA (PMROA) 3. Asset Turnover (AT)
(b) 1. Return on Common Equity (ROCE) 2. Profit Margin for ROCE (PMROCE) 3. Asset Turnover (AT) 4. Capital Structure Leverage Ratio (CSLR)
(c) 1. Net income to common shareholders derived from the excess return on creditors capital. 2. Excess return on preferred shareholders capital. 3. Return on common shareholders capital.
Please help with Part C.
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