I need FULL Solutions to the problems below. Answers are at the bottom.

1. In 2013 Whole Foods had sales of $74 billion and a net income of $17 billion, and its year-end total assets were $121.31 billion. The firm's equity multiplier ratio was 1.83. Based on the DuPont equation, what was the Whole Foods' ROE in 2013.

2. As of 2013 DK corporation's EBIT is $150,000, their annual interest payment is $20,000, and its dividend which is decided to pay to common stockholders is $5,000. Based on the following corporate tax brackets, how much is the company's tax liability? And what is a company's average tax rate?

Corporate tax rate

Taxable income Marginal tax rate*

0-50,000 15%

50,000-75,000 25%

75,000-100,000 34%

100,000-335,000 39%

*plus this percentage on the amount over the bracket base

Answers:

1. 0.2567 or 25.67%

2. $33,950 and 26.12%