Selected ratios for two companies operating in the petroleum industry follow, along with the industry averages:

Instructions
(a) Compare the profitability of Petro-Boost with that of World Oil, and with the industry average. Which company is more profitable? Explain.
(b) You would like to invest in the shares of one of the two companies. Your goal is to have regular income from your investment that will help pay your tuition fees for the next few years. Which of the companies is a better choice for you? Explain.
(c) Assume that instead of looking for regular income, you are looking for growth in the share value so that you can resell the shares at a gain in the future. Now which of the two companies is better for you? Explain.

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Ratio Boost World Ol Industry Average Profit margin Return on common shareholders' equlty Return on assets Asset turnover Earnings per share Price-earnings ratilo Payout ratto Dividend yleld 10.9% 10.0% 15.1% 11.0% 1.1 times $4.06 14.2 times 12.3% 1.9% 8.4% 295% 12.6% 1.5 times 11.3% 0.5 times 13.0 times 17.1 times 9.9%