CP 17-5 Profitability analysis Deere & Company manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere's credit divi- sion loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per- share amounts): Net income Preferred dividends Year 3 $2,368.4 Year 2 $2,159.1 Year 1 $1,523.9 Interest expense $0.00 $0.00 $0.00 Cash dividend per share Shares outstanding for computing earnings per share $1,203.6 $899.5 $763.7 323 320 315 $2.58 $2.40 $2.40 Average total assets Average stockholders' equity $67,947 $61,852 $57,933 Average stock price per share $10,426 $8,046 $6,644 $134.16 $110.59 $83.94 1. Compute the following ratios for each year, rounding ratios and percentages to one 2. decimal place, except for per-share amounts: a. Return on total assets b. Return on stockholders' equity c. Earnings per share d. Dividend yield e. Price-earnings ratio Based on these data, evaluate Deere's profitability.