The following financial information is for A. Galler Company for 2011 2010 2009

Income before interest: 2011-4400000 2010-4000000 2009-3300000

Interest expense: 2011-800000 2010-600000 2009-550000

Income before tax: 2011-3600000 2010-3400000 2009-2750000

Tax: 2011-1500000 2010-1450000 2009-1050000

Net Income: 2011-2100000 2010-1950000 2009-1700000

Current Liabilities: 2011-2600000 2010-2300000 2009-2200000

Long-Term Debt: 2011-7000000 2010-6200000 2009-5800000

Preferred Stock(14%) 2011-100000 2010-100000 2009-100000

Common Equity: 2011-10000000 2010-9000000 2009-8300000

Required:

a. For 2011 2010 and 2009 determine the following

1. Return on assets(using end of year total assets)

2. Return on investment(using end of year long term liabilities and equity)

3. Return on total equity(using ending total equity)

4. Return on common equity(using ending common equity)

b. discuss the trend in these profit figures

c. discuss the benefit from the use of long-term debt and preferred stock