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:
$\begin{array}{llll}&2011&2010&2009&2008\\\text { Net Income } & \$ 56,759 & \$ 31,150 & \$ 15,375&\$14,750 \\\text { Total Assets at year-end } & \$ 381,500 & \$ 246,250 & \$ 145,490&\$ 71,268 \\ \text { Weighted Average number of shares } & & \\\text { Outstanding } & 84,215 & 80,546 & 77,965&75,888 \\\text { Total Liabilities at year-end } & 205,967 & 119,657 & 60,522 &17,623\\\text { Common Stockholders Equity at year-end } & \$ 175,533 & \$ 126,593 & \$ 84,968&\$53,645\\\text { Interest Expense }&165&195&258&368\end{array}$

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.