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 NRM
Sales 6,900 2,600 1,900
Net income 200 100 100
Average Assets 4,000 4,800 2,600
Average Equity 1,000 1,500 1,800
Average Liabilities 3,000 3,300 1,400

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