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1. (20 points) Linda's Clothing is a retailer of contemporary women's clothing. Selected financial information for Linda's appears below: 2011 2010 2008 $978,560 $786,500 $520,650 $245,820 S 56,759 31,150 15,375 $14,750 $381,500 $246,250 $145,490 $71,268 2009 Net sales Net Income Total Assets at year-end Weighted Average number of shares Outstanding Total Liabilities at year-end Common Stockholders'Equity at year-end Interest Expense 84,215 80,546 77,965 205,967 119,657 60,522 84,968 75,888 17,623 $175,533 165 $126,593 195 $53,645 368 258 Required: a Compute the rate of return on assets for the years 2009-2011. Linda's has an effective tax rate of 35%. (6 points) b. Compute the rate of return on common shareholders' equity for the years 2009-2011. (6 points) c. If Lin da wants to improve its ROA, propose two scenarios to improve the operation by breaking down the ROA. Provide your numeric analysis by inserting a spreadsheet of proposed change of one item at a time. (8 points) (Answ presentation and or chart-making ability. Do your best presentation of an analysis to demonstrate Excel ability. The presentation will not be evaluated as part of your semester grade; the content of the answer will) er to this part of question is used to assess Morgan student's mastery of Excel

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