Shareholders' Equity:
Preferred Stock $\$ .10$ Par Value; 100 Shares Authorized, None Issued)
Common Stock

question 10

Essay

$\begin{array} { l r r } \text { Long-term debt } & 7,709 & 8,508 \\ \text { Long-tern obligations under capital leases } & 2,307 & 2,092 \\ \text { Deferred income taxes and other } & 463 & 400 \\ \text { Minority interest } & 1,025 & 331 \end{array}$
Shareholders' equity:
Preferred stock ( $\$ .10$ par value; 100 shares authorized, none issued)
Common stock ( $\$ .10$ par value; 5,500 shares authorized, 2,285 and
$\begin{array}{lrr}2,293 \text { issued and outstanding in X6 and X7, respectively) } & 228 & 229 \\\text { Capital in excess of par value } & 547 & 545 \\\text { Retained earnings } & 16,768 & 14,394 \\\text { Foreign currency translation adjustment } & \underline{(400)}&\underline{(412)} \\\quad \text { Total shareholders' equity }&\underline{17,143}&\underline{14,756} \\\text { Total liabilities and shareholders' equity }& \underline{\$ 39.604} & \underline { \$ 37.541} \end{array}$

a. Calculate return on common equity (ROCE) for fiscal X4 and X7. Identify, as far as allowed by the data, components driving any changes in ROCE from X4 to X7. (If you want to give students more guidance then ask to disaggregate ROCE into net operating profit margin, net operating asset turnover and leverage.)

b. Compare and contrast the change in earnings per share to ROCE over this time period.

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Definitions:

Inverse Seniority

A system used during layoffs where employees with the least amount of seniority are laid off first, as opposed to those with more seniority.

Grievance Procedure

A formal process through which employees can submit complaints or disputes for resolution, usually outlined in a collective bargaining agreement.

Formal Grievance

A structured complaint process followed by employees to formally raise issues about their employment conditions or treatment by employers.

Grievance Procedure

A formalized process through which employees can file complaints or disputes for management to resolve, usually outlined in their contract or employee handbook.