This exercise is built around Whole Foods Market's financial statements from the chapter. Average common shareholders' equity

Question:

This exercise is built around Whole Foods Market's financial statements from the chapter. Average common shareholders' equity for 2012 was $3.397 billion, and a 40% income tax rate should be used as needed.

Required:

1. Whole Foods earned an ROA of 9.7% in 2012. What was ROCE that year?

2. ROA at the company fell to 9.4% in 2015. What was ROCE that year?

3. Did financial leverage help or hurt Whole Foods Market in 2015? How can you tell?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...