This exercise is built around Whole Foods Market’s financial statements from the chapter. Several items of additional information are needed: there were no dividends on redeemable preferred stock in 2012, the preferred stock having been redeemed in 2010; preferred dividends were $19,833 in 2009; average common shareholders’ equity for 2009 was $1,566,950; and a 40% income tax rate should be used as needed.

Required:
1. Whole Foods earned an ROA of 4.7% in 2009. What was ROCE that year?
2. ROA at the company grew to 9.7% in 2012. What was ROCE that year?
3. Did financial leverage help or hurt Whole Foods Market in 2012? How can you tell?