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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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