Part F: ROE Analysis Return all assumptions at their initial (Part A) values, including returning accounts payable/sales to the average of the previous three years. 1. Below the balance sheet (e.g., in row 58) calculate return on equity for each year 2012 to 2015. (Note: To calculate ROE, one could reasonably divide net income by equity in the same year, equity in the previous year, or an average of the two. Here let's just divide by equity in the same year.) Q11: How does projected ROE for 2015 compare to 2012? 2. To better understand projected ROE for 2015, calculate the three levers of ROE for 2012 to 2015 in the rows below ROE. Recall that the three levers are profit margin, asset turnover and leverage (assets/equity). Q12: What is primarily responsible for the projected fall in ROE in 2015 compared to 2012? Q13: Why is leverage projected to increase so much for 2015, given that the increase in previous years has been relatively moderate