Consider the following financial data for Verizon Communications Inc. and AT&T Inc. for the fiscal year 2023:

($ millions)	Verizon Communications Inc.	AT&T Inc.
Net sales	$135,000	$120,000
Cost of sales	65,000	55,000
Gross profit	70,000	65,000
Operating expenses:
Selling, general, and administrative	32,000	28,000
Research and development	8,000	6,500
Operating income	30,000	30,500
Interest and other (income) expense	7,000	6,500
Interest and investment income	(1,500)	(1,200)
Earnings before provision for income taxes	24,500	25,200
Provision for income taxes	6,100	6,300
Net earnings	$18,400	$18,900

Required: a. Calculate the return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for Verizon Communications Inc. and AT&T Inc. Assume a tax rate of 25%. b. Disaggregate the ROA into profit margin (PM) and asset turnover (AT) for both companies. Discuss the primary factors affecting their ROA. c. Analyze the trend in operating income over the past five years. How does it impact their financial health and ability to invest in network expansion? d. Evaluate the interest coverage ratio for Verizon Communications Inc. and AT&T Inc. What does it indicate about their ability to meet interest obligations? e. Compare the net profit margins of Verizon Communications Inc. and AT&T Inc. What insights can be drawn about their cost management and profitability?