Refer to the data in A4- 7. Assume that the assets of Argon Enterprises Inc. totaled $ 1,980,000 at the end of 20X1, $ 1,750,000 at year- end 20X2, and $ 2,120,000 at year- end 20X3.

Required:
1. Assume you are analyst for a private equity firm. Determine the following for each of 20X2 and 20X3:
a. Return on assets
b. Return on total shareholders’ equity
c. Return on invested capital
2. Explain the relevance and significance of these ratios for deciding whether or not your firm should invest in Argon Enterprises.