Question
KLA-Tencor Corporation Average Balance Sheet Operating Assets $2,627,235.50 Nonoperating Assets $2,948,529 Operating Liabilities $1,518,371 Nonoperating Liabilities $2,583,930 Equity $1,473,464 Income Statement Operating Expenses $2,499,507 Tax
KLA-Tencor Corporation
Average Balance Sheet
Operating Assets $2,627,235.50
Nonoperating Assets $2,948,529
Operating Liabilities $1,518,371
Nonoperating Liabilities $2,583,930
Equity $1,473,464
Income Statement
Operating Expenses $2,499,507
Tax Expense $653,666
Interest Expense/Net $81,263
Net Income $802,265
E4-36. Compute and Compare ROE, ROA, and RNOA
Refer to the balance sheet and income statement information for
KLA-Tencor Corporation in E4-34.
a. Compute return on equity (ROE).
b. Compute return on net assets (ROA).
c. Compute return on net operating assets (RNOA).
d. Compare the three return metrics and explain what each one measures.
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