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Summary information from the financial statements of two companies competing in the same industry follows.

Barco

Company Kyan

Company Barco

Company Kyan

Company

Data from the current year$-$end balance sheets Data from the current year$$s income statement

Assets Sales $ $770,000$ $ $896,200$

Cash $ $21,000$ $ $36,000$ Cost of goods sold $592,100636,500$

Accounts receivable, net $38,40059,400$ Interest expense $7,70015,000$

Merchandise inventory $84,940134,500$ Income tax expense $14,80024,741$

Prepaid expenses $6,0007,300$ Net income $155,400219,959$

Plant assets, net $280,000312,400$ Basic earnings per share $3\mathrm{.}884\mathrm{.}87$

Total assets $ $430,340$ $ $549,600$ Cash dividends per share $3\mathrm{.}704\mathrm{.}00$

Liabilities and Equity Beginning$-$of$-$year balance sheet data

Current liabilities $ $68,340$ $ $103,300$ Accounts receivable, net $ $27,800$ $ $51,200$

Long$-$term notes payable $79,800115,000$ Merchandise inventory $65,600109,400$

Common stock, $$5$ par value $200,000226,000$ Total assets $408,000372,500$

Retained earnings $82,200105,300$ Common stock, $$5$ par value $200,000226,000$

Total liabilities and equity $ $430,340$ $ $549,600$ Retained earnings $74,80066,141$

$2$a$.$ For both companies compute the $($a$)$ profit margin ratio, $($b$)$ total asset turnover, $($c$)$ return on total assets, and $($d$)$ return on common stockholders$$ equity. Assuming that each company$$s stock can be purchased at $$105$ per share, compute their $($e$)$ price$-$earnings ratios and $($f$)$ dividend yields. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

$2$b$.$ Identify which company$$s stock you would recommend as the better investment.