The table, shows 2016 total revenues, cost of goods sold, earnings available for common stockholders, total assets, and stockholders' equity for three companies competing in the bottle drinks market: The Coca-Cola Company, Pepsico Inc., and Dr Pepper Snapple Group.

TABLE:

Coca-Cola Pepsico Dr. Pepper Revenues $41,862 $62,803 $6,436 Cost of goods sold 16,464 28,205 2,586 Earnings 6,540 6,329 837 Total assets 87,268 74,120 9,789 Shareholders equity 23,057 11,241 2,145

a. Use the information given to analyze each firm's profitability in as many different ways as you can. Which company is most profitable? Why is this question difficult to answer? (Round three decimal places for the percentages)

Gross profit margin- 0.607 0.551 0.598 (I have this for the first set as my answer)

Net profit Margin-

ROA-

ROE-

(Please show formulas for how you calculated the answer)

b. For each company, ROE >ROA. Why is that so? Look at the difference between ROE and ROA for each company. Does that difference help you determine which firm uses the highest percentage of debt to finance its activities?