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Do the assigned questions using Malimash, Inc.'s 2014 financial data below: Malimash, Inc. 2014 Financial Data ($ millions) Income Statement Data Sales Revenue $7,120.00 Depreciation
Do the assigned questions using Malimash, Inc.'s 2014 financial data below: Malimash, Inc. 2014 Financial Data ($ millions) Income Statement Data Sales Revenue $7,120.00 Depreciation $230.00 Interest Expense $10.00 Pretax Income $2,550.00 Income Taxes $900.00 Net Income $1,650.00 Balance Sheet Data Current Assets $4,850.00 Fixed Assets, Net $2,400.00 Total Assets $7,250.00 Current Liabilities $3,290.00 Long-Term Debt $100.00 Shareholders' Equity $3,860.00 Total Liabilities and Shareholders' Equity $7,250.00 Required: 1) Calculate return on common equity for 2014 using year-end amounts and assuming no preferred dividends. 2) Disaggregate the ROCE into operating (RNOA) and non-operating components. 3) Comment on Merck's use of leverage. (Assume all assets and current liabilities are operating at a 35% tax rate). Please show all calculations and equations that you use. An excel document would be best. Thank you
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