1. Fill in the blanks and give reasons:

Company A Company B

ROE 8%. , 8%

Profit Margin%. 4% , 7%

TAT 3, 1.7

ROA 11%, 13%

Generic Strategy?

A. Fill in the generic strategy row above. (3 points)

The answer the following questions: B. How different are the two firms financials? Explain each ratio. How are they related to their strategies (7 points) 2. A. How would you interpret a current ratio of 0.8? (2 points) B. Is it good or bad for the firm? (3 points) C. What information you would need to extra to interpret it? (5 points)