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Question 5 Answer saved Marked out of 1.00 p Flag question Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement
Question 5 Answer saved Marked out of 1.00 p Flag question Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement information for the drug retailers CVS Caremark Corporation and Walgreen Co. follows. Assume tax rate of 35%. ($ millions) Sales revenue-2011 Interest expense 2011 Net income-2011 Total assets-2011 Total assets-2010 Stockholders' equity-2011 Stockholders' equity-2010 cvs Caremark Walgreen $109,100 $73,184 588 89 3,557 2,714 62,543 26,454 60,169 24,275 38,051 14,847 37,700 14,400 a. Compute the 2011 return on assets (ROA) for each company. (Round your answers to one decimal place.) CVS Caremark Walgreen 0 % 0 % ROA b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. (Round your answers to one decimal place.) CVS Caremark Walgreen 0 % 0 % AT 0 0 PM C. Compute the 2011 return on equity (ROE) and return on financial leverage (ROFL) for each company. (Round your answers to one decimal place.) CVS Caremark Walgreen ROE 0 % 0 % ROFL 0 % 0 %
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