Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow (\$ thousands). Operating assets Nonoperating assets Operating liabilities Operating expense Interest expense, net Nonoperating liabilities Equity Tax expense Net income a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerato b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Note: 1 . Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2 . Enter the numerato c. Calculate the profitability (profit margin, PM) and productivity (asset turnover, AT) components of ROA. Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute PM. Note: 1. Select the appropriate numerator and denominator used to compute AT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute AT. d. Confirm the ROE from part a. above with the full DuPont disaggregation: ROE = PM AT FL. ROE may be different from part a. due to rounding Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow (\$ thousands). Operating assets Nonoperating assets Operating liabilities Operating expense Interest expense, net Nonoperating liabilities Equity Tax expense Net income a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerato b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Note: 1 . Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2 . Enter the numerato c. Calculate the profitability (profit margin, PM) and productivity (asset turnover, AT) components of ROA. Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute PM. Note: 1. Select the appropriate numerator and denominator used to compute AT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute AT. d. Confirm the ROE from part a. above with the full DuPont disaggregation: ROE = PM AT FL. ROE may be different from part a. due to rounding