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ii. Refer to income statement for 13-week quarter ending April 3, 2010. Compute potential impact of lease capitalization on return on eq- uity and return

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ii. Refer to income statement for 13-week quarter ending April 3, 2010. Compute potential impact of lease capitalization on return on eq- uity and return on assets for the quarter. Assume that lease payments and the amortization and interest expenses you computed for scal 2010 in F v. above were incurred evenly over scal 2010. Also, assume a marginal tax rate of 35%. For simplicity, use the balance sheet numbers at Jan. 2, 21] 10 in the denominator of both return ratios rather than averages. Is it true the decision to capitalize leases will always yield weaker per- famraace ratios

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