alculating and Interpreting the Return on Common Share-holders' Equity and Its Components. JCPenney operates a chaln of retall department stores, selling apparel, shoes, jewelry, and hame fumishings. it also offers most of Its products through catalog distribution. During fiscal Year S, it sold Eckerd Drugs, a chaln of retall drugstores, and used the cash proceeds, In part, to repurchase shares of its common stock Exhibit 4.27 presents selected data for JCPenney for fiscal Year 3, Year 4, and Year 5. REQUIRED a. Calculate the rate of ROA for fiscal Year 3, Year 4, and Year 5. Disaggregate ROA into the profit margin for ROA and total assets turnover components. The income tax rate is 35% b. Calculate the rate of ROCE for fiscal Year 3, Year 4, and Year 5. Disaggregate ROCE Into the profit margin for ROE, assets turnover, and capital structure leverage components
Calculating and Interpreting the Return on Common Share-holders' Equity and Its Components. JCPenney operates a chaln of retall department stores, selling apparel, shoes, jewelry, and hame fumishings. it also offers most of Its products through catalog distribution. During fiscal Year S, it sold Eckerd Drugs, a chaln of retall drugstores, and used the cash proceeds, In part, to repurchase shares of its common stock Exhibit 4.27 presents selected data for JCPenney for fiscal Year 3, Year 4, and Year 5.
REQUIRED
a. Calculate the rate of ROA for fiscal Year 3, Year 4, and Year 5. Disaggregate ROA into the profit margin for ROA and total assets turnover components. The income tax rate is 35%
b. Calculate the rate of ROCE for fiscal Year 3, Year 4, and Year 5. Disaggregate ROCE Into the profit margin for ROE, assets turnover, and capital structure leverage components
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