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confirm that the answer for question 16 its okay and answer 17 An analyst...

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confirm that the answer for question 16 its okay and answer 17

An analyst gathered the following data about Starbucks. Using this information for question 16 to 17. 2017 2018 Net profit margin (net income / 12.9% 18.3% revenue) Asset turnover (revenue / assets) 1.6 1.3 Leverage (assets/equity) 2.5 5.8 16. (5 points) Compute Starbucks' ROE in 2017 and 2018 respectively (Hint: ROE=net income / equity). 4 ROE in year 2017 = 12.9% * 1.6 * 2.5 ROE in year 2017 = 51.60% ROE in year 2018 = 18.3% * 1.3*5.8 ROE in year 2018 = 137.98 17. (5 points) Based on your calculations above, is ROE increased, decreased, or remain constant? Using DuPont Analysis to justify your answer (why ROE is increased, decreased, or remains constant)

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