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WRITING SHOULD BE CLEAR TO READ! Disaggregate Traditional DuPont ROE Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations

WRITING SHOULD BE CLEAR TO READ!

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Disaggregate Traditional DuPont ROE Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. $ millions May 31, 2015 May 31, 2014 Operating assets $56,535 $51,447 Nonoperating assets 54,368 38,819 Total assets 110,903 90,266 Operating liabilities 19,847 18,722 Nonoperating liabilities 41,958 24,097 Total liabilities 61,805 42,819 Total Oracle stockholders' equity 48,663 46,878 Total revenues 38,226 Operating income before tax 13,871 Nonoperting expense before tax Tax expense 2,896 Net income 9,938 1,037 a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE 20.88 * % b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) ROA 9.88 % FL 2.11 C. Calculate the profitability and productivity components of ROA. Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) PM 26 % AT 38 x

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