Profitability analysis for two companies The following data show five items from the financial statements of two companies for a recent year (amounts in millions):

aNet Income + [Interest Expense x (1 ' Tax Rate)J
bNet Thcome - Preferred Stock Dividends
a. Compute the rate of return on assets for each company and disaggregate ROA into profit margin for ROA and total assets turnover components.
b. Compute the rate of return on common shareholders' equity for each company and disaggregate ROCE into profit margin for ROCE, total assets tumor, and capital structure leverage components.
c. The two companies are Intel (developer and manufacturer of semiconductors) and Verizon Communications (telecommunication services). Which of the companies corresponds to A and H? What clues did u use in reaching yourconclusions?

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Company A Company B For Year Revenues... Income Before Interest and Related Taxes Net Income to Common Sharehalders Average during Year Total Assets.... Common Shareholders' Equity.. $93,469 5,999 5,510 $38,334 6,986 6,976 187,882 52,010 39,757 49,558