1. Prepare charts based on the data in Exhibit 7B evaluate the likelihood that Diageo will suffer financial distress. Exhibit 7B Median industry returns on assets, 1950-1999. Industry N Mean Volatility Industry N Mean Volatility ROA ROA Food 155 15.4% 1.7% Extractive Industries 41 15.5% 2.8% Textiles / Printing 335 15.2% 2.0% Utilities 194 11.7% 2.9% Retail 544 13.2% 2.2% Durable Manufacturing 1,187 14.2% 3.6% Transportation 266 14.3% 2.2% Real Estate / Insurance 197 7.6% 3.8% Services 395 12.7% 2.2% Pharmaceuticals 119 20.7% 4.8% Chemicals 132 16.6% 2.4% Computers 413 15.0% 4.8% Financial Institutions 410 3.9% 2.5% Mining / Construction 337 11.0% 5.0% Source: Casewriter calculations based on Center for Research in Security Prices data with 239,126 observations over 50 years. Bilten 1. Prepare charts based on the data in Exhibit 7B evaluate the likelihood that Diageo will suffer financial distress. Exhibit 7B Median industry returns on assets, 1950-1999. Industry N Mean Volatility Industry N Mean Volatility ROA ROA Food 155 15.4% 1.7% Extractive Industries 41 15.5% 2.8% Textiles / Printing 335 15.2% 2.0% Utilities 194 11.7% 2.9% Retail 544 13.2% 2.2% Durable Manufacturing 1,187 14.2% 3.6% Transportation 266 14.3% 2.2% Real Estate / Insurance 197 7.6% 3.8% Services 395 12.7% 2.2% Pharmaceuticals 119 20.7% 4.8% Chemicals 132 16.6% 2.4% Computers 413 15.0% 4.8% Financial Institutions 410 3.9% 2.5% Mining / Construction 337 11.0% 5.0% Source: Casewriter calculations based on Center for Research in Security Prices data with 239,126 observations over 50 years. Bilten