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Lindas Clothing is a retailer of contemporary womens clothing. Selected financial information for Lindas appears below: 2011 2010 2009 2008 Net Income $ 56,759 $

Lindas Clothing is a retailer of contemporary womens clothing. Selected financial information for Lindas appears below:

2011

2010

2009

2008

Net Income

$ 56,759

$ 31,150

$ 15,375

$14,750

Total Assets at year-end

$381,500

$246,250

$145,490

$71,268

Weighted Average number of shares

Outstanding

84,215

80,546

77,965

75,888

Total Liabilities at year-end

205,967

119,657

60,522

17,623

Common Stockholders' Equity at year-end

$175,533

$126,593

$ 84,968

$53,645

Interest Expense

165

195

258

368

Required:

a.

Compute the rate of return on assets for the years 2009-2011. Lindas has an effective tax rate of 35%.

b.

Compute the rate of return on common shareholders equity for the years 2009-2011.

c.

Compute basic earnings per share for the years 2009-2011.

d.

Interpret the changes in ROA versus ROCE and EPS over the three-year period.

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