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    Return on Equity (ROE) Finance Problem

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    Decompose the return on equity for the FY ending on January 31st, 2004 in its five components below:

    ROE = EAT/EBT X EBT/EBIT X EBIT/SALES X SALES/INV.CAP. X INV.CAP/SH.EQUITY

    Please show ALL work

    Use these links:

    http://finance.yahoo.com/q/is?s=SPLS&annual
    http://finance.yahoo.com/q/bs?s=SPLS&annual
    http://finance.yahoo.com/q/ks?s=SPLS

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    https://brainmass.com/business/finance/return-equity-roe-finance-problem-27794

    Solution Preview

    ROE = EAT/EBT X EBT/EBIT X EBIT/SALES X SALES/INV.CAP. X INV.CAP/SH.EQUITY

    EAT = Net Income = 490,211
    EBT = Income Before Tax = 778112
    EBIT = 798,288 ...

    Solution Summary

    This solution calculates return on equity.

    $2.19

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