1. What differences would you expect to hnd between a convenience store and a car dealership, in terms of net profit margin and total asset turnover ratios? Why? 2. You are given the following financial data for Pelican Paperine and Timberland Forest Inc. Pelican Paper Timberland Tots assets $10,000,000 $10,000,000 Common stockholder equity $.7.500.000 $ 2.500,000 Total debt $ 2.500.000 $ 7.500,000 Interest expense $ 200.000 $ 600,000 Total Sales $20,000,000 $20,000,000 EBIT $ 3,000,000 $ 3.000.000 Earnings alable for common stockholders 5 1.960,000 $ 160,000 . (1) Calculate each company's debt ratio and (b) times interest earned ratio. Discuss their financial risk and ability to cover the interest costs in relation to each other 21 Calculate each company's net profit marginio return on assets and to return on equity Discuss their profitability relative to one another in what way has the larger debt of Timberland Forest made it more profitable thin Pelican Paper? What are the risks that Timberland Investors undertake? are the financial data pven in the above Question for Pelican Paper Inc and Timberland Forest inc Calculate each w's total awet tumover (b) equity ratio fofinancial leverage multiplier . 2 Dupont item formula to calculate each hrs ROAD ROL. Do you get the same answers of ROA and ROE a Question 223 4. Afirma neprofit margin of 10% totale turnover of 12 and a financial leverage multiplier of 15. Calculate the RCA and ROE What is the advantage to using the DuPont wstem to cake ROL over the direct calculation of earnings available for common stockholders divided by common stock equity