Question: 8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015

8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows.

$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,783 $38,673
Nonoperating assets 2,291 1,798
Total assets 43,074 40,471
Operating liabilities 15,068 13,577
Nonoperating liabilities 21,270 17,152
Total liabilities 36,338 30,729
Total stockholders' equity 6,736 9,742
Sales 89,464
Net operating profit before tax (NOPBT) 12,224
Nonoperting expense before tax 828
Tax expense 4,523
Net income 6,873

Round answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute return on equity.____%?

b. Compute return on net operating assets (RNOA).____%?

c. Use ROE and RNOA to determine the nonoperating return for the year.____%?

d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM ____%? NOAT ____%? RNOA ____%?

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