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Calculate the five components of ROE and verify that their product equals ROE d. Compute
return on equity (ROE) for both companies for fiscal 2013 and 2012. Calculate the five
components of ROE and verify that their product equals ROE. Remember to use average total
assets and average stockholders' equity in your ratio calculations. The 2012 balance sheet (with
comparative 2011 information) is included as the last page of the financial statement excerpts to
allow for computation of average balances for the 2012 ratios.

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Calculate the five components of ROE and verify that their product e.pdf

  • 1. Calculate the five components of ROE and verify that their product equals ROE d. Compute return on equity (ROE) for both companies for fiscal 2013 and 2012. Calculate the five components of ROE and verify that their product equals ROE. Remember to use average total assets and average stockholders' equity in your ratio calculations. The 2012 balance sheet (with comparative 2011 information) is included as the last page of the financial statement excerpts to allow for computation of average balances for the 2012 ratios.