Corporate Finance I Exereise 3 (2 points) 1. Meyer Appliance Company makes cooling fans. The fiem's income statement is as follows: Sales (7,000 fans at $20) 6,000 Earnings before roerest and taxes Bm Eamings before taxes B -Taxes (T Eamings aftor taxes (EAT ,000 Compute: a) Degree of operating leverage b) The break-even point Exercise 4 (5 points) There are two comparable companies which achieved following results within sclectod parameter Parameter EAT Long-term assets Current assets Current liabilities1 Owner's Equity0 Sales Company A Company B 60 180 320 100 300 400 300 20 1500 Vhich of these companies achieved better results? What caused calculated differences? a) Calculate: ROS: ROA: Current ratio: Total asset tumover, Debt to total assets b) Compare and justify calculated results