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(Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Item Total assets Total equity (all common)

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(Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Item Total assets Total equity (all common) Total debt Annual interest Total sales EBIT Earnings available for common stockholders Pelican Paper, Inc. $10,100,000 9,400,000 700,000 70,000 27,000,000 6.750,000 Timberland Forest, Inc. $10,100,000 5,400,000 4,700,000 470,000 27,000,000 6,750,000 3,985,200 3,726,000 The relationship between financial leverage and profitability Plan Paper maand Timberland Forest, we rival in the manufacture of craft paper tomarcialment values for each company follow Use them in a tatio analysis that comes the mercege wa profitability a. Calculate the following debt and coverage rates for the two companies Discuss the financial risk analyse over the costs relation to each other (1) Dettato (2Times interes med at b. Calue the following profitabiiy rations for the two companies. Discuss their profitably elative to each other (1) Operating profit margin (2) Netprom 3 Retum on total assets (4) Return on common equity c. in what way has the larger det of Timberland Forest made it more profitable than Pelican Papur? What we are risks at Timberland's wivestors undertoe won they choose to purchases mock instead of Pelican (Round to the decima glace) a. The debt ratio for Pelicans

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