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Carefree Company provides the following selected financial information for Year 2000: Sales $17,633 Net Income $405 Interest expense before taxes $245 Preferred stock dividend $27

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Carefree Company provides the following selected financial information for Year 2000: Sales $17,633 Net Income $405 Interest expense before taxes $245 Preferred stock dividend $27 Tax rate 35% Average total assets $17917.5 Average preferred equity $348 Average common equity $5901.5 (a) Calculate the ROA for Year 2000. Disaggregate ROA into the profit margin for ROA and (b) Calculate the ROCE for Year 2000. Disaggregate ROCE into the profit margin for (c) Calculate the amount of net income to common shareholders derived from the excess (d) Did debt work to the advantage of the common shareholders in Year 2000? How about total assets turnover components. ROCE, assets turnover, and capital structure leverage components. return on creditors' capital, the excess return on preferred shareholders' capital, and the return on common shareholders' capital. preferred stock, did it work to the advantage of the common shareholders in Year 2000

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