Exercise 6 11 Calculating ROCE for Kroger (LO6 4) This exercise is built around Krogers financial statements from the chapter Total shareholders' equityThe Kroger Co was $5,384 million at February 1, 2014 Refer to Exhibits 6 1, 6 6 and 6 14 from the chapter Required Kroger earned an ROA of 6 9 in fiscal 2014 What was ROCE that year (Round your answer to 1 decimal place ) ROA at the company fell to 3 7 in fiscal 2017 (adjusted to eliminate the one time effect on earnings of the Tax Cuts and Jobs Act) What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act) (Round your answer to 1 decimal place ) Did financial leverage help or hurt Kroger in fiscal 2017 1 ROCE 2014 14 7selected answer incorrect 2 ROCE 2017 32 0selected answer incorrect 3 Did financial leverage help or hurt Kroger in fiscal 2017 Help

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Question: Exercise 6-11 Calculating ROCE for Kroger (LO6-4) This exercise is built around Krogers financial statements from the chapter. Total shareholders' equityThe Kroger Co. was $5,384

Exercise 6-11 Calculating ROCE for Kroger (LO6-4)

This exercise is built around Krogers financial statements from the chapter. Total shareholders' equityThe Kroger Co. was $5,384 million at February 1, 2014. Refer to Exhibits 6.1, 6.6 and 6.14 from the chapter.

Required:

Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.)
ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.)
Did financial leverage help or hurt Kroger in fiscal 2017?


1.	ROCE 2014	14.7selected answer incorrect	%
2.	ROCE 2017	32.0selected answer incorrect	%
3.	Did financial leverage help or hurt Kroger in fiscal 2017?	Help

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