Selected balance sheet and income statement information from Staples, Inc., follows ($ millions). ...
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Accounting
Selected balance sheet and income statement information from Staples, Inc., follows ($ millions).
Sales
Interest expense
Net income
Total Assets
Stockholders' Equity
2014
2014
2014
2014
2013
2014
2013
$30,501
$93
$246
$14,525
$15,386
$7,316
$8,144
a. Compute the 2014 return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL). Use 35% as the incremental tax rate. Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer.
ROE
Answer
ROA
Answer
ROFL
Answer
b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer.
PM
Answer
AT
Answer
Answer & Explanation
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