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Compute the return on assets for each company

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Question - Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors - Selected balance sheet and income statement information for McDonald's Corporation and Yum! Brands, Inc., follows (in millions).

Sales Revenue

Interest Expense

Net Income

Average Total Assets

McDonalds

$29,885

$670

$5,091

$37,041

Yum! Brands

13,612

146

998

9,042

a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer.

b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company.

Reference no: EM133151148

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