Calculate the return on assets and return on equity for the following companies. What appears to be the average interest rate faced by the companies? As a broad generalization, which companies appear to be effectively utilizing debt to improve financial performance? Net Income Interest Expense* Preferred Dividends Average Assets Average Equity Alejando Corp. $120,000 $10,000 $0 $1,100,000 $1,000,000 Ling Corp. $100,000 $80,000 $20,000 $1,900,000 $1,100,000 Beaufort Corp. $700,000 $200,000 $15,000 $4,000,000 $2,000,000 Robinson Corp. $300,000 $200,000 $100,000 $6,000,000 $4,000,000

Net Income Interest Expense* Preferred Dividends Average Assets Average Equity Alejando Corp. $120,000 $10,000 $0 $1,100,000 $1,000,000 Ling Corp. $100,000 $80,000 $20,000 $1,900,000 $1,100,000 Beaufort Corp. $700,000 $200,000 $15,000 $4,000,000 $2,000,000 Robinson Corp. $300,000 $200,000 $100,000 $6,000,000 $4,000,000 Return on Assets Return on Equity Alejando Corp. Ling Corp. Beaufort Corp. Robinson Corp.