Question Two (30 Marks) Naset Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Naserfor four years. In 2017, Nasers's net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act 2015 2016 15,223 S s 14,327 0 Naser Corporation ($ in millions) Total assets Common stockholders' equity Total debt 2017 15,841 3 $ $ 2018 17,920 6 10,202 7,8499 4,388.5 Sales Net income Interest expense Assumed marginal income tax rate 8,254.7 4,357.1 16,208 1 900.4 169.2 0.37 9,084.8 3,795.1 20,252 4 1,380.6 173.6 0.37 4,291.1 25,067 3 2,481.1 135.5 0.23 Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results. 1. Calculate Naser's ROA for 2016, 2017, and 2018. (7.5 Marks) 2. Decompose ROA into operating profit margin and asset turnover components. (7.5 Marks) 3. Has Naser's profitability changed over the three years? (10 Marks) 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018