Question 3 (7 marks) Selected Statement of Comprehensive Income (SOCI) and Statement of Financial Position (SOFP) data from Merak Kayangan Berhad for year 2020 are reproduced below: Merak Kayangan Berhad Year 2020 selected financial data (RM millions) 7,120 230 10 2,550 900 1,650 SOCI data: Sales revenue Depreciation Interest expense Pretax income Income taxes Net income SOFP data: Current assets PPE, net Total assets Current liabilities Bank borrowings Shareholders' equity Total liabilities and shareholders' equity 4,850 2,400 7,250 3,290 100 3,860 7,250 From the above information, you are required to: a. Calculate return on common equity for year 2020 using year-end amounts and assuming no preferred dividends. b. Calculate Merak Kayangan's return on operating assets for year 2020 using year-end amounts. Assume all assets are operating assets and current liabilities are operating liabilities, and a 35% tax rate. C. Based on your calculation in part (a) and (b), comment on Merak Kayangan's use of leverage. ***end of question***