Net operating profit margin (NOPM) and net operating asset turnover (NOAT) for several selected companies for the

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Net operating profit margin (NOPM) and net operating asset turnover (NOAT) for several selected companies for the most recent year follow.image text in transcribed

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a. Graph NOPM and NOAT for each of these companies. Do you see a pattern that is similar to that shown in this module? Explain. (The graph in the module is based on medians for selected industries; the graph for this problem uses fewer companies than in the module and, thus, will not be as smooth.)

b. Consider the trade-off between profit margin and asset turnover. How can we evaluate companies on the profit margin and asset turnover trade-off? Explain.

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