Chapter $17$ extra$1)$ Company A has $$50$ million in assets and generates $$80$ million in sales. Company B has $$210$ million in assets and generates $$530$ million in salesEverything else equal, which company is better and how do you know $?\_\_\_\_\_\_\_\_\_\_\_\_\_2)$ Company A Company A generates $$80$ million in sales and has $$4$ million in Net IncomeCompany B generates $$530$ million in sales and has $$11$ million in Net IncomeEverything else equal, which company is better and how do you know? $\_\_\_\_\_\_\_\_\_\_\_\_\_3)$ What is the ROA of Company A$?$ What is the ROA of company B$?$Which is higher and why?$\_\_\_\_\_\_\_\_\_\_\_\_4)$ Assume Company A has $$50$ million in Assets and $$11$ million in DebtAssume company B has $$210$ million in Assets and $$120$ million in DebtWhat is the ROE of Company A$?$ What is the ROE of Company B$?$Which is higher and why? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_5)$ Which company might you interpret as riskier, A or B$?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_6)$ Company X and Y are both in the same industry where the industry average P$/$E multiple is $15,$ but Company X sells higher volume lower margin products has a lower ROA, lower ROE and less favorable growth prospects compared to all other companies in the industry. Company Y sells premium products at a higher margin and has a higher ROA, higher ROE, and a more favorable growth outlook compared to all other companies in the industry. a$.$ Which company is the better why? $\_\_\_\_\_\_\_\_\_\_\_\_$b$.$ With regards the industry average, which company would you expect to sell at the higher P$/$E multiple relative to the industry average, why? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$c$.$ IF X has Net Income of $$70$ million and $9$ million shares outstanding what is the EPS of X$?\_\_\_\_\_\_\_$IF Y has Net Income of $$800$ million and $360$ million shares outstanding what is the EPS of Y$?\_\_\_\_\_\_\_$Which Company is better why? $\_\_\_\_\_\_\_\_\_\_\_\_\_$d$.$ If Company X trades at a P$/$E multiple of $11,$ what is the share price of company X$?\_\_\_\_$ Company Y trades at a P$/$E multiple of $21,$ what is the Share price of Company Y$?\_\_\_\_\_\_$Which Company is the Better Investment, why? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$e$.$ Now if X somehow produces $$80$ million in next income next year and has $9$ million shares outstanding and trades at a P$/$E multiple of $12$ while Y somehow produces $$950$ million in net income and has $350$ million shares outstanding and trades at a P$/$E multiple of $20,$ in hindsight, what was the better investment? Why? $\_\_\_\_\_\_\_\_\_\_\_\_$