Use the financial data given in the above Question 2 for Pelican Paper Inc. and Timberland Forest Inc.

(1) Calculate each firms (a) total asset turnover (b) equity ratio (c) financial leverage multiplier

(2) Use Dupont system formula to calculate each firms ROA and ROE. Do you get the same answers of ROA and ROE as Question 2 (2)

(1) Calculate each company's (a) debt ratio and (b) times interest earned ratio. Discuss their financial risk and ability to cover the interest costs in relation to each other (2) Calculate each company's (a) net profit margin (b) return on assets, and (c) return on equity. Discuss their profitability relative to one another. (3) In what way has the larger debt of Timberland Forest made it more profitable than Pelican Paper? What are the risks that Timberland's investors undertake