Do the assigned questions using Malimash, Inc.’s 2014 financial data below: MUST SHOW ALL CALCULATIONS and JUSTIFICATIONS
- Calculate return on common equity for 2014 using year-end amounts and assuming no preferred dividends.
- Disaggregate the ROCE into operating (RNOA) and non-operating components.
- Comment on Merck’s use of leverage. (Assume all assets and current liabilities are operating at a 35% tax rate).
2014 Financial Data ($ millions)Income Statement Data
Balance Sheet Data
Fixed Assets, Net
Total Liabilities and Shareholders’ Equity