Question

Compute and Compare ROE, ROA, and RNOA
Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.

$ millions	May 31, 2015	May 31, 2014
Operating assets	$62,090	$57,002
Nonoperating assets	54,368	38,819
Total assets	116,458	95,821
Operating liabilities	20,180	19,055
Nonoperating liabilities	41,958	24,097
Total liabilities	62,138	43,152
Total Oracle stockholders' equity	54,320	52,669
Total revenues	38,559
Operating income before tax	13,993
Nonoperating expense before tax	1,037
Tax expense	3,498
Net income	9,458

a. Compute return on equity (ROE)
Round answer to two decimal places (ex: 0.12345 = 12.35%)
Answer__%

b. Compute return on net assets (ROA)
Round answers to two decimal places (percentage ex: 0.12345 = 12.35%)
Answer__%

c. Compute return on net operating assets (RNOA)
Round answers to two decimal places (percentage ex: 0.12345 = 12.35%)
Assume a 37% statutory tax rate.
Answer___%

Answer 1