Computing Return on Equity and Return on Assets The following table contains financial statement information for Wal-Mart Stores, Inc.

($ millions)	Total Assets	Net Income	Sales	Equity
2010	$170,407	$14,370	$408,085	$70,468
2009	163,429	13,381	404,254	65,285
2008	163,514	12,731	378,799	64,608

(a) Compute the return on equity (ROE) for 2010 and 209. (Round your answers to one decimal place.) 2010 ROE =Answer% 2009 ROE =Answer% What trend, if any, is evident? How does Wal-Mart's ROE compare with the approximately 20% median ROE for companies in the Dow Jones Industrial average?

Wal-Mart's ROE decreased from 2009 to 2010 and is similar to the median for other companies in the Dow Jones average.

Wal-Mart's ROE increased from 2009 to 2010 and is slightly above the median for other companies in the Dow Jones average.

Wal-Mart's ROE increased from 2009 to 2010 and is similar to the median for other companies in the Dow Jones average.

Wal-Mart's ROE decreased from 2009 to 2010 but still exceeds the median for other companies in the Dow Jones average.

(b) Compute the return on assets (ROA) for 2009 and 2010. (Round your answers to one decimal place.) 2010 ROA =Answer% 2009 ROA =Answer% What trend, if any, is evident? How does Wal-Mart's ROA compare with the approximately 6.7% median ROA for companies in the Dow Jones Industrial average?

Wal-Mart's ROA increased from 2009 to 2010 and is above the median for other Dow Jones companies.

Wal-Mart's ROA decreased from 2009 to 2010 and is similar to the median for other Dow Jones companies.

Wal-Mart's ROA increased from 2009 to 2010 and is slightly below the median for other Dow Jones companies.

Wal-Mart's ROA decreased from 2009 to 2010 but still exceeds the median for other Dow Jones companies.

(c) Which of the following factors might allow a company like Wal-Mart Stores, Inc to realize above-average returns?

Wal-Mart Stores, Inc operates with more assets and equity than the average company.

Wal-Mart Stores, Inc's advertising budget is substantial, thus allowing it to generate a higher level of sales.

Wal-Mart has considerable market power over suppliers as a result of its considerable size, which may result in product cost savings. Wal-Mart is also able to use its considerable advertising budget to its advantage.

Wal-Mart Stores, Inc's sales level is greater than the typical company.