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Selected balance sheet and income statement information from Staples, Inc., follows ($ millions). Sales Interest expense Net income Total Assets Stockholders' Equity 2014 2014 2014
Selected balance sheet and income statement information from Staples, Inc., follows ($ millions).
Sales | Interest expense | Net income | Total Assets | Stockholders' Equity | ||
---|---|---|---|---|---|---|
2014 | 2014 | 2014 | 2014 | 2013 | 2014 | 2013 |
$30,501 | $93 | $246 | $14,525 | $15,386 | $7,316 | $8,144 |
a. Compute the 2014 return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL). Use 35% as the incremental tax rate. Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer.
ROE | Answer |
ROA | Answer |
ROFL | Answer |
b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer.
PM | Answer |
AT | Answer |
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