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Compute, Disaggregate and Interpret ROE and ROA Selected balance sheet and income statement information from Office Depot, Inc. follows ($ mill Sales Interest expense Net
Compute, Disaggregate and Interpret ROE and ROA Selected balance sheet and income statement information from Office Depot, Inc. follows ($ mill Sales Interest expense Net income Total Assets Stockholders' Equity 2017 $10,240 2017 $62 2017 2017 2016 $181 $6,323 $5,540 2017 2016 $2,120 $1,852 a. Compute the 2017 return on equity (ROE), return on assets (ROA), and return on financial leve Use 35% as the incremental tax rate. Round answers to one decimal place (i.e., 0.2568 = 25.7%). ROE ROA ROFL 8.54 % x 1.3% x 5.7 % * b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer. - PM 1.62% x AT 1.62 x Check
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