PLEASE EXPLAIN HOW TO CALCULATE EACH. THANK YOU!!

3. Arrow Corporation reports an ROE of 13.5%, a leverage ratio of 1.5, an asset turnover of 1.75, and a profit margin of 9%.

Calculate Arrows ROA and the comment on the ROA in relation to the ROE

Use the DuPont Model to explain what is happening. Be specific.

4. Keller Cosmetics maintains an operating profit margin of 5% and an asset turnover ratio

of 3.

a. What is the ROA?

b. If its debt-equity ratio is 1, it interest payments and taxes are each $8,000, and

EBIT is $20,000, what is the ROE?