Use the following selected balance sheet and income statement data (in $ millions) to compute

1. return on equity

2. profit margin (PM)

3. asset turnover (AT)

4. financial leverage (FL) for fiscal 2016.

Show that ROE = PM AT FL.

Operating revenues 2016: $75,659

Operating revenues 2015: $87,804

Interest expense 2016: 446

Interest expense 2015: 433

Net income attributable to Valero stockholders 2016: 2,289

Net income attributable to Valero stockholders 2015: 3,990

Total assets 2016: 46,173

Total assets 2015: 44,227

Total Valero stockholders equity 2016: 20,024

Total Valero stockholders equity 2015: 20,527

Statutory tax rate 2016: 37%

Statutory tax rate 2015: 37%