Calculating and disaggregating rate of return on common shareholders€™ equity Information taken from the annual reports of Exxon Mobil, a petroleum company, for three recent years appears below (amounts in millions):
a. Compute the rate of return on common shareholders€™ equity for each year. There was no preferred stock outstanding during the three years.
b. Disaggregate the rate of return on common shareholders€™ equity into profit margin for ROCE, total assets turnover, and capital structure leverage ratio components.
c. How has the profitability of Exxon Mobil changed over the threeyears?

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2007 2005 2006 $404,552 Revenues.. $377,635 $370,680 36,130 201,796 Net Income Average Total Assets. Average Common Shareholders' Equity .. 40,610 39,500 213,675 112,515 230,549 117,803 106,471