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Using the following financial statement data, calculate the following ratios for 2013: Operating margin, asset turnover, interest burden, financial leverage, income tax rate, ROE using

Using the following financial statement data, calculate the following ratios for 2013: Operating margin, asset turnover, interest burden, financial leverage, income tax rate, ROE using the dupont formula.

Income statment data 2005 2013
Revenues 542 979
Operating income 38 76
Depreciation and Amortization 3 9
Interst expense 3 0
Pretax income 32 67
Income taxes 4 27
Net income after tax 28 40
Balance Sheet
Fixed assets 41 70
Total assets 648 898
working capital 123 157
Total debt 126 60
total shareholders equity 399 681

Current stock price is $19.23

Discuss how interest burden and asset turnover have impacted ROE from 2005 to 2013.

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