Homework Answers
| Return on assets = net income / total average assets |
| Total average assets = (40,262+ 41,172) / 2 = 40,717 |
| Return on assets for 2015 = 3321 / 40717 = 8.16 % |
| Calculate return on common stockholder's equity for 2015: |
| The amount of Net income for 2015 is $3,321 |
| Average Stock holder's equity = (Beginning stockholder's equity + ending stockholders equity)/2 |
| Average Stock holder's equity = (13997+12957)/2 |
| Average Stock holder's equity $13,477 |
| Return on common stockholder's equity = Net income/Average stockholders equity |
| Return on common stockholder's equity = 3321/13477 |
| Return on common stockholder's equity for 2015 = 24.6% |
Financial leverage = Average total assets / Average equity
= 40,717/13,477
= 3.02
target corporation financial leverage is positive which is 3.02
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Selected account information (in $ millions) from Target Corporation's 2015 annual report follows. While the company...
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