A1 &T and GTE produce and market telecommunications products and are competitors. Key financial figures (in $ millions) for these businesses over the past year follow:

Required

1. Compute return on assets for (a) AT&T and (b) GTE.

2. Which company is more successful in the total amount of sales to consumers?
3. Which company is more successful in returning net income from its amount invested?
Analysis Component

4. Write a one-paragraph memorandum explaining which company you would invest your money in and why. (Limit your explanation to the information provided.)

Transcribed Image Text:

Key Figures AT&T GTE Sales $79.609 $19,957 Net income 139 2,538 Average invested (assets) 87.261 37,019