Question $1(2$ points$)$

Refer to Exhibit $1.$ What is the firm's total assets turnover ratio? Do not round your intermediate calculations.

Question $2(2$ points$)$

Refer to Exhibit $1.$ What is the firm's operating margin?

Question $3(2$ points$)$

Refer to Exhibit $1.$ What is the difference between firm's return on equity and return on asset?

Question $4(2$ points$)$

Refer to Exhibit $1.$ What is the firm's $\frac{P}{E}$ ratio?

Exhibit $1$

Balance Sheet $($Millions of $$)$

Assets

Cash and securities

Accounts receivable

Inventories

Total current assets

Net plant and equipment

Total assets

Liabilities and Equity

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term bonds

Total liabilities

Common stock

Retained earnings

Total common equity

Total liabilities and equity

Income Statement $($Millions of $$)$

Net sales

Operating costs except depreciation

Depreciation

Earnings before interest and taxes $($EBIT$)$

Less interest

Earnings before taxes $($EBT$)$

Taxes $(25\%)$

Net income

Other data:

Shares outstanding $($millions$)$

Common dividends $($millions of $$)$

Int. rate on notes payable &$L-T$ bonds

Federal plus state income tax rate

Year$-$end stock price

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