Given the following data for Profiteers, Inc., and the corresponding industry averages, perform a trend analysis of the return on investment and the return on stockholders’ equity. Plot the data and discuss any trends that are apparent. Also, discuss the underlying causes of these trends. k-63

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Years 2006 2007 2008 2009 2010 Profiteers, Inc. Net profit margin 14% 12% 11% 9% 10% Asset turnover 1.26 x 1.22 x 1.20 x 1.19 x 1.21 x Equity multiplier 1.34 x 1.40 x 1.61 x 1.65 x 1.63 x Years 2006 2007 2008 2009 2010 Industry Averages Net profit margin 12% 11% 11% 10% 10% Asset turnover 1.25 x 1.27 x 1.30 x 1.31 x 1.34 x Equity multiplier 1.42 x 1.45 x 1.47 x 1.51 x 1.53 x