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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

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