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How estimate target return on equity

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Reference no: EM132595931

For the fiscal year ending January 31, 2011, Target had total revenues of $67,390 million, and net earnings of $2,920 million. Its total assets were $43,705 million, and its equity was $15, 487 million. For the fiscal year ending January 31, 2012, Target had total revenues of $69,865 million, and net earnings of $2,929 million. Its total assets were $46,630 and its equity was $15,821.

Question 1: Estimate Target's return on equity (ROE) for each of these two years, using the DuPont decomposition to indicate the profit margin, the asset turnover, and the firm's financial leverage.

Question 2: Why has the ROE changed?

Question 3: What are the ROE drivers for Target

Reference no: EM132595931

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