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The following information has been extracted from the books of Daisy Ltd, a dairy farm in Queensland. Total asset turnover: 1.8 times Leverage ratio: 2.4

The following information has been extracted from the books of Daisy Ltd, a dairy farm in Queensland. Total asset turnover: 1.8 times Leverage ratio: 2.4 Debt to equity ratio; not available - calculate from leverage ratio Profit margin: 7.0% Interest burden: 0.9 Tax burden: 0.7 Tax rate: 30% Interest rate on debt: 7%. Calculate for Daisy Ltd: a. The return on equity (ROE) using the du Pont system. 5 marks b. The operating return on asset (ROA). 10 marks

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