Question: Please answer all part of the question Using the table below, you are asked to calculate perform three-factor ROE decomposition (i.e. calculate ROE and its
Please answer all part of the question
Using the table below, you are asked to calculate perform three-factor ROE decomposition (i.e. calculate ROE and its components) for all three of the following companies. What would you advise each company to do to improve its ROE? Discuss the specific component that needs to be improved and present an example of how it could done. Please round your answers to two decimal places.
| MTR | TKO | NRM | |
| Sales | 1,300 | 7,300 | 8,000 |
| Net income | 300 | 100 | 300 |
| Average Assets | 2,600 | 1,500 | 1,800 |
| Average Equity | 1,000 | 1,200 | 600 |
| Average Liabilities | 1,600 | 300 | 1,200 |
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