Required information Ratio analysis [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Ratio Analysis Problem 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and ( f dividend yields. 2b. Identify which company's stock you would recommend as the better investment. For both companies compute the profit margin ratio. For both companies compute the return on total assets. For both companies compute the total asset turnover For both companies compute the return on equity. Issuming that share and each company's stock can be purchased at $105 per share, compute their price-earn Assuming that each company's stock can be purchased at $105 per share, compute their dividend yields