This exercise is built around Krogers financial statements from the chapter. Total shareholders' equityThe Kroger Co. was $5,384 million at February 1, 2014. Refer to Exhibits 6.1, 6.6 and 6.14 from the chapter.

Required:

1. Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.)
2. ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.)
3. Did financial leverage help or hurt Kroger in fiscal 2017?

\begin{tabular}{|c|l|l|l|} \hline 1. & ROCE 2014 & % \\ \hline 2. & ROCE 2017 & % \\ \hline 3. & Did financial leverage help or hurt Kroger in fiscal 2017? & Help \\ \hline \end{tabular}