Copy the Aspen Industries financial statements from Problem 1 in Chapter 2 into a new workbook.

a. Set up a ratio worksheet similar to the one in Exhibit 4-4, page 121, and calculate all of the ratios for Aspen Industries.

b. Identify at least two areas of potential concern using the ratios. Identify at least two areas that have shown improvement.

c. In 2004 Aspen Industriesí ROE increased dramatically.

Explain, in words, why this increase occurred using the Du Pont method as shown in equation (4-29).

d. Aspen Industries has shown an accounting profit in each of the past two years. Calculate their economic profit for these years and compare it to net income. Assume that Aspenís cost of capital is 11%.

e. Using Altmanís model for privately held firms, calculate the Z-score for Aspen Industries. Does it appear that the firm is in imminent danger of bankruptcy?