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Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreen Co.

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Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreen Co. follows. Assume tax rate of 35%. CVS Health Walgreen $139,367 $76,392 156 4,644 2,031 74,252 37,182 71,526 35,481 Stockholders' equity-2014 37,963 20,561 Stockholders' equity-2013 37,938 19,454 $ millions) Sales revenue-2014 Interest expense-2014 Net income-2014 Total assets-2014 Total assets-2013 600 a. Compute the 2014 return on assets (ROA) for each company. (Round your answers to one decimal place.) CVS Health Walgreen ROA 0 96 b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. (Round your answers to one decimal place.) CVS HealthWalgreen PM 0 9% AT c. Compute the 2014 return on equity (ROE) and return on financial leverage (ROFL) for each company Round your answers to one decimal place.) CVS Health Walgreen ROE 0 ROFL Check

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