The following table contains financial statement information for Wal-Mart Stores, Inc. Required a. Compute the return on

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The following table contains financial statement information for Wal-Mart Stores, Inc.image text in transcribed

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a. Compute the return on equity (ROE) for 2012 and 2013. What trend, if any, is evident? How does Wal-Mart's ROE compare with the approximately \(21.5 \%\) median ROE for companies in the Dow Jones Industrial average for 2012?

b. Compute the return on assets (ROA) for 2012 and 2013. What trends, if any, are evident? How does Wal-Mart's ROA compare with the approximate \(6.7 \%\) median ROA for companies in the Dow Jones Industrial average for 2012?

c. What factors might allow a company like Wal-Mart to reap above-average returns?

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