ROE Component Ratios and Model-Return to the financial statement data provided in Problem 10 for Safety-First, Inc. A. Calculate the net profit margin, the sales-to-total-assets ratio, and the equity...

ROE Component Ratios and Model-Return to the financial statement data provided in Problem 10 for Safety-First, Inc.

A. Calculate the net profit margin, the sales-to-total-assets ratio, and the equity multiplier for both 2009 and 2010 using year-end (rather than average) balance sheet data.

B. Use the results from Part A to calculate the venture’s return on equity in each year.

C. Describe what happened in terms of the financial performance of Safety-First, Inc., between 2009 and 2010.