Computing Return on Equity and Return on Assets The following table contains financial statement information for AstraZeneca, which is a global biopharmaceutical company focused on discovery, development, manufacturing, and commercialization of medicines and is headquartered in London.

$ millions Total Assets Net Income Sales AstraZeneca Equity 2013 . . . . . . $55,899 $2,571 $25,806 $23,253 201???? . . . . . . 58,595 1,235 26,5????7 19,6????6 2015 . . . . . . 60,12???? 2,826 2????,708 18,509 Required

a. Compute the return on equity (ROE) for 2014 and 2015. What trend, if any, is evident? How does AstraZeneca’s ROE compare with the approximately 18.9% median ROE for companies in the Dow Jones Industrial average for 2015?

b. Compute the return on assets (ROA) for 2014 and 2015. What trends, if any, are evident? How does AstraZeneca’s ROA compare with the approximate 7.1% median ROA for companies in the Dow Jones Industrial average for 2015?

c. What factors might explain AstraZeneca’s below-average returns?