1. Recent financial statements for a major public company reports the following:

Average total assets	$2,355,000
Average shareholders' equity	$1,295,000
Net income	$211,750

Required:

1. Calculate the companys return on equity and return on assets.
2. If the average ROE = 10.5% and average ROA = 6.5%; discuss the companys ROE and ROA performance relative to its industrys average.
3. If the mean 5-year average ROE and ROA for the company are 6.2% and 3.8%; discuss the companys ROE and ROA performance relative to their recent average performance.
4. Given your comments above, would you consider investing in the companys common stock, pending further investigation of other relevant issues? Please explain your answer.