Question: Using the financial statements provided in next page for the three years ending 31 December 2008, 2009, and 2010, answer the following questions. (1)Calculate this

Using the financial statements provided in next page for the three years ending 31 December 2008, 2009, and 2010, answer the following questions.

(1)Calculate this companys operating profit margin, debt/capital, and EBITDA/Interest expensefor every year.

(2)Compared to the creditworthiness in 2008, did the creditworthiness of this company in 2010 increase, decrease or stay the same? Provide explanationsto support your argument. Using the financial statements provided in next page for the three years

Year Ended Dec. 31 2008 2009 2010 Net Revenues (or "Gross profit") 2,535.5 2,793.0 3,566.9 2,177.3 2,409.1 3,261.5 Total operating expenses Operating income (or "Operating profit") Interest income 358.2 383.9 305.4 9.0 5.0 1.6 Interest expense 28.2 34.2 84.1 Other operating income 19.3 7.9 27.7 Income before taxes 358.3 362.6 250.6 Income taxes 119.9 140.6 67.3 Net income 238.4 222.0 184.4 Additional information: Depreciation and amortization 170.7 189.0 281.9 Total debt 877.9 1,457.8 1,516.1 Shareholders' equity 2,108.6 3,023.1 3,282.6 Total Assets 4,650.8 5,580.5 5,645.6

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