a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 16.4% 17.3% ROA 15.8% 16.3% ROE 78.9 % 74.6% b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ 0$ 0$ 0 Equity, restated 0$ 0$ 0 Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 096 096 ROA 096 0% ROE 096 096 c. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? of the three measures, which one is least influenced by the company's stock repurchase activity?

a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 16.4% 17.3% ROA 15.8% 16.3% ROE 78.9 % 74.6% b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ 0$ 0$ 0 Equity, restated 0$ 0$ 0 Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 096 096 ROA 096 0% ROE 096 096 c. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? of the three measures, which one is least influenced by the company's stock repurchase activity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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