Question
Compute ROA and Adjusted ROA The following information was reported by Yum Brands in its form 10-K. Use this information to answer the requirements. $
Compute ROA and Adjusted ROA The following information was reported by Yum Brands in its form 10-K. Use this information to answer the requirements.
$ millions | Dec. 31, 2019 | Dec. 31, 2018 |
---|---|---|
Net income | $1,488 | $1,773 |
Interest expense, net | 557 | 570 |
Average total assets | 4,681 | 4,721 |
a. Which ratio removes the effect of the company's financing decisions from the ratio: AnswerReturn on assetsAdjusted return on assets
Correct Mark 1.00 out of 1.00
b. Compute (1) return on assets, (2) the adjusted return on assets, and (3) the percentage difference in the measures for each year. Assume a statutory tax rate of 22%. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%).
2019 | 2018 | |
---|---|---|
(1) ROA | Answer Incorrect Mark 0.00 out of 1.00 | Answer Incorrect Mark 0.00 out of 1.00 |
(2) Adjusted ROA | Answer Incorrect Mark 0.00 out of 1.00 | Answer Incorrect Mark 0.00 out of 1.00 |
(3) % Difference in measures | Answer Incorrect Mark 0.00 out of 1.00 | Answer Incorrect Mark 0.00 out of 1.00 |
Step by Step Solution
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