For fiscal year $2018,$ Walmart Inc.$($WMT$)$ had total revenues of $ $500\mathrm{.}34$billion$,$ net income of $ $9\mathrm{.}86$billion$,$ total assets of $ $204\mathrm{.}52$billion$,$ and total$$ shareholders' equity of $ $77\mathrm{.}87$ billion.

a$.$ Calculate$$ Walmart's ROE$$ directly, and using the DuPont Identity.

b$.$ Comparing with the data for Costco LOADING...$,$ use the DuPont Identity to understand the difference between the two$$ firms' ROEs.

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Part $1$

a$.$ The ROE calculated directly is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $2$

The ROE calculated using the Dupont Identity is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $3$

b$.$ Walmart has a inferior profit$$ margin, a

$$

lower

higher

asset turnover and a

$$

lower

higher

equity multiplier. Walmart has a

$$

smaller

larger

ROE that is driven by$$ it's asset turnover and leverage. $($Select from the$$ drop$-$down menus.$)$

For fiscal year $2018,$ Costco Wholesale Corporation$($COST$)$ had a net profit margin of $2\mathrm{.}08\%,$ asset turnover of $3\mathrm{.}55,$ and a book equity multiplier of $3\mathrm{.}37.$Costco$\text{'}$s ROE$($DuPont$)$ is $24\mathrm{.}88\%.$

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