4 P1-47. Computing, Analyzing, and Interpreting Return on Equity and Retu d Interpreting Return on Equity and Return on Assets owing are summary financial statement data for Medtronic, plc for 2014 through 2016. 2015 2014 2016 $ millions Sales.......... Net income....... Total assets... Equity ......... $28,833 3,538 99,782 52,063 $ 20,261 2.675 106,685 53,230 $17,005 3,065 37,943 19,443 Required a. Compute the return on assets and return on equity for 2016 and 2015 (use average assets and average equity), together with the components of ROA (profit margin and asset turnover). What trends do we observe? b. Which component appears to be driving the change in ROA over this time period? c. Recompute the ROA and ROE for 2015 using year-end balances instead of averages. Use your results to explain why we typically use averages to compute ratios. d. Medtronic repurchased a large amount of its common shares in 2016 at a cost of almost $2.83 bil- lion. How did this repurchase affect its return on equity