Problem 1 (10 points) ROE ROA ANOA Lark co 2014 2013 18.10 17.500 30% 11 001 9.71% 12.54% Robin Co 2014 2013 18.10 18.40% 7.82" 5.44% 6.36% 6.25% Eagle Co 2014 2013 8.20" 5.554 0.30 6.2016 9.26% 5.19% 7.90 2.50% 2.90 Profit margin ATO Gross margin Effective tax rate 5.90% 1.4 40.20% 31.1096 44.40% 33.00% 4.60% 1.7 29.80% 21.40" 29.70% 15.40% 3.00% 2.1 19.90% 36.10% 18.709 35.70% Lark Co., Robin Co., and Eagle Co make purses, handbags and related products, Selected financial statement data for the three Gross marron muri companies are given above. Profit margin.net income whertaxime ATO save foulet Required ROA(Net income taxi ROE - Caming for how com equity 1. (4 points) Lark Co.'s ROA declined in 2014. NOPAT Net income-financial expense-financial income Which of the following may have contributed to this decline? More than one explanation may be RNOA NOPATIA genet aperating true. Your answer should be based on the given Effective tax rate (ETR) Income tax cape/income data. Net borrowing conter tax interes totallibilities A ROA declined partly because the interest rate on Lark's debt rose from 2013 to 2014. Likely? Brielly explain. 8. The decline in Lark's 2014 ROA is partly due to the company reducing selling prices because of new competition Likely Briefly explain Problem 1 (10 points) ROE ROA ANOA Lark co 2014 2013 18.10 17.500 30% 11 001 9.71% 12.54% Robin Co 2014 2013 18.10 18.40% 7.82" 5.44% 6.36% 6.25% Eagle Co 2014 2013 8.20" 5.554 0.30 6.2016 9.26% 5.19% 7.90 2.50% 2.90 Profit margin ATO Gross margin Effective tax rate 5.90% 1.4 40.20% 31.1096 44.40% 33.00% 4.60% 1.7 29.80% 21.40" 29.70% 15.40% 3.00% 2.1 19.90% 36.10% 18.709 35.70% Lark Co., Robin Co., and Eagle Co make purses, handbags and related products, Selected financial statement data for the three Gross marron muri companies are given above. Profit margin.net income whertaxime ATO save foulet Required ROA(Net income taxi ROE - Caming for how com equity 1. (4 points) Lark Co.'s ROA declined in 2014. NOPAT Net income-financial expense-financial income Which of the following may have contributed to this decline? More than one explanation may be RNOA NOPATIA genet aperating true. Your answer should be based on the given Effective tax rate (ETR) Income tax cape/income data. Net borrowing conter tax interes totallibilities A ROA declined partly because the interest rate on Lark's debt rose from 2013 to 2014. Likely? Brielly explain. 8. The decline in Lark's 2014 ROA is partly due to the company reducing selling prices because of new competition Likely Briefly explain
