Linda's Clothing Is a Retailer of Contemporary Women's Clothing Required:
A

Linda's Clothing is a retailer of contemporary women's clothing.Selected financial information for Linda's appears below:
$\begin{array}{lrrrr} & \mathbf{2 0 1 1} & \mathbf{2 0 1 0} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} \\\text { Net Income } & \$ 56,759 & \$ 31,150 & \$ 15,375 & \$ 14,750 \\\text { Total Assets at year-end } & \$ 381,500 & \$ 246,250 & \$ 145,490 & \$ 71,268 \\\text { Weighted Average number of shares } & & & & \\\text { Outstanding } & 84,215 & 80,546 & 77,965 & 75,888 \\\text { Total Liablities at year-end } & 205,967 & 119,657 & 60,522 & 17,623 \\\text { Common Stockholders' Equity atyear-end } & \$ 175,533 & \$ 126,593 & \$ 84,968 & \$ 53,645 \\\text { Interest Expense } & 165 & 195 & 258 & 368\end{array}$

Required:
a.Compute the rate of return on assets for the years 2009-2011.Linda's has an effective tax rate of 35%.
b.Compute the rate of return on common shareholders' equity for the years 2009-2011.
c.Compute basic earnings per share for the years 2009-2011.
d.Interpret the changes in ROA versus ROCE and EPS over the three-year period.