Question: Using the table below, you are asked to calculate three-factor ROE decomposition (i.e., calculate ROE and its components) for all three of the following companies.

Using the table below, you are asked to calculate 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? Please round your answer to two decimal places.

MTR

TKO

NRM

Sales

1300

7300

8000

Net Income

300

100

300

Average Assets

2600

1500

1800

Average Equity

1000

1200

600

Average Liabilities

1600

300

1200

ROE

Net Profit Margin

Turnover Ratio

Leverage

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