20 Calculating and Interpreting the Return on Common Share-holders Equity and Its Components. JCPenney operates a chain of retail department stores, selling apparel, shoes, jewelry, and home furnishings. It also offers most of its products through catalog distribution. During scal Year 5, it sold Eckerd Drugs, a chain of retail drugstores, and used the cash proceeds, in part, to repurchase shares of its common stock. Exhibit 4.27 presents selected data for JCPenney for scal Year 3, Year 4, and Year 5.

a. Calculate the rate of ROA for scal Year 3, Year 4, and Year 5. Disaggregate ROA into the prot margin for ROA and total assets turnover components. The income tax rate is 35%.