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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