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3. Assume the following data for Interactive Technology and Silicon Software. (10 marks) Interactive Silicon Technology (IT) Software (SS) $15,000 $50,000 150,000 1,000,000 160,000 400,000

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3. Assume the following data for Interactive Technology and Silicon Software. (10 marks) Interactive Silicon Technology (IT) Software (SS) $15,000 $50,000 150,000 1,000,000 160,000 400,000 60,000 240,000 100,000 160,000 Net Income Sales Total assets Total debt Shareholder's equity a. Compute return on shareholder's equity for both firms. Which firm has the higher return? b. Compute the following ratios for both firms: i. Net income/sales ii. Net income/total assets iii. Sales/total assets iv. Debt/total assets c. Discuss the factors that added or detracted from each firm's return on shareholder's equity

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