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Selected information taken from the 20X2 annual report of Aardvark Company follows. During 20X2, the company had no nonoperating or nonrecurring items included in income

Selected information taken from the 20X2 annual report of Aardvark Company follows. During 20X2, the company had no nonoperating or nonrecurring items included in income and had no outstanding preferred stock.

($ in millions) 20X2 20X1
Sales $ 19,903 $ 18,781
Interest expense 130 169
Net income 1,153 1,088
Total assets 12,673 12,461
Dividends (153 ) (131 )
Total stockholders equity $ 4,288 $ 4,007
Assumed tax rate 35 % 35 %
Industry ROA 7.32 %
Industry operating profit margin 6.1 %

Required:

a. For 20X2, calculate: ROA, ROCE, operating profit margin, and asset turnover. Round your percentage answers to one decimal place. For example, 0.1234 = 12.3%.

b. Based on the industry data provided, does Aardvark appear to have a competitive advantage (briefly explain your answer)? If so, what strategy is the firm apparently following?

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