Assume that Best Buy Co's return on equity (ROE) for 2010 is 24.03% and its return on net operating assets (RNOA) is 21.08%. Assume that the combined federal and state statutory tax rate is 37%. a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Assume that Equity and other investments are operating. Round to the nearest whole number, if applicable.
2010 NNE - ($ millions)
2010 NOPAT - ($ millions)
b. Compute net nonoperating obligations (NNO) for 2010 and 2009.
2010 NNO $ millions)
2009 NNO- ($ millions)
c. Compute financial leverage (FLEV). Round answer to four decimal places.
2010 FLEV =
d. Compute NNEP and Spread. Round answers to two decimal places (example: 0.12345 = 12.35%).
2010 NNEP = %
2010 Spread = 0 46
e. Compute the noncontrolling interest ratio (NCI ratio). Round answer to four decimal places.
2010 NC ratio =
f. Confirm the relation: ROE = [RNOA + (FLEV * Spread)] * NCI ratio.
2010 ROE =___ % =0 9+10 ΧΟ %)] x 0