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
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 NAM Sales 9,200 6,600 7,200 Net income 400 200 100 Average Assets 1,200 800 2,900 Average Equity 1,200 600 1,400 Average Liabilities 1,500 200
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