Question: Selected income statement and balance sheet data from Merck & Co. for Year 5 are reproduced below. Assume fixed assets and working capital are operating

Selected income statement and balance sheet data from Merck & Co. for Year 5 are reproduced below. Assume fixed assets and working capital are operating and a 50% tax rate.

Requirements

  1. Calculate ROCE for year 5.

  2. Calculate RNOA for year 5.

  3. Calculate Leverage for year 5.

  4. Calculate Spread for year 5.

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