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How do you solve for RNOA with 37% statutory tax rate (c)? Question 5 Partially correct Mark 2.00 out of 3.00 p Flag question $52,091

image text in transcribedHow do you solve for RNOA with 37% statutory tax rate (c)?

Question 5 Partially correct Mark 2.00 out of 3.00 p Flag question $52,091 Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. millions May 31, 2015 May 31, 2014 Operating assets $47,003 Nonoperating assets 54.368 38,819 Total assets 106,459 85,822 Operating liabilities 19.725 18,600 Nonoperating liabilities 41.958 24,097 Total liabilities 61,683 42.697 Total Oracle stockholders' equity 44.776 43.125 Total revenues 38,104 Operating income before tax Nonoperating expense before tax 1,037 Tax expense 3.520 Net income 8,981 13.538 a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) 20.43 % b. Compute return on net assets (ROA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) 9.34 % C. Compute return on net operating assets (RNOA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) Assume a 37% statutory tax rate. 20.23 x %

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