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Assume the following data for two companies: Tamla and Amaron. Tamla Amaron Net income $20,000 $250,000 Sales 300,000 1,400,000 Total assets 320,000 1,000,000 Total debt

Assume the following data for two companies: Tamla and Amaron.

Tamla

Amaron

Net income

$20,000

$250,000

Sales

300,000

1,400,000

Total assets

320,000

1,000,000

Total debt

120,000

400,000

Stockholders' equity

200,000

600,000

$

$

Dividends to common shareholders

5,000

90,000

book value per share

5.00

6.00

Market Value per share

4

10.00

Shares outstanding (number of shares)

40,000

100,000

Compute the following ratios for both firms to make the appropriate decision.

- EPS

- Price/Earnings (P/E)

- DPS

- Net income/Total assets

- Net income/ Stockholders' equity

Answer fast and just mention the final results - no need for details answer

Return on Assets Tamla Earnings per Share (EPS) Tamla Return on Assets Amaron Dividends per Share (DPS) Tamla return on stockholders' equity for Tamla Price/Earnings (P/E) Tamla return on stockholders' equity for Amaron Amaron has better profitability ratios (True, False) Price/Earnings (P/E) Amaron Earnings per Share (EPS) Amaron

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