Compute the rate of roce

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Relating ROA and ROCE. Boston Scientific, a medical device manufacturer, reported net income (amounts in millions) of $1,062 on sales of $5,624 during Year 4. Interest expense totaled $64. The income tax rate was 35%. Average total assets were $6,934.5, and av- erage common shareholders' equity was $3,443.5. The firm did not have preferred stock out- standing or noncontrolling interest in its equity.

Problem a. Compute the rate of ROA. Disaggregate ROA into profit margin for ROA and assets turn- over components.

Problem b. Compute the rate of ROCE. Disaggregate ROCE into profit margin for ROCE, assets turn- over, and capital structure leverage ratio components.

Reference no: EM132844042

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