Requirment:

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 companys stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which companys stock you would recommend as the better investment.

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 5 Complete this question by entering your answers in the tabs below. For both companies compute the profit margin ratio. Complete this question by entering your answers in the tabs below. For both companies compute the total asset turnover Complete this question by entering your answers in the tabs below. For both companies compute the return on total assets. Complete this question by entering your answers in the tabs below. For both companies compute the return on equity. Complete this question by entering your answers in the tabs below. Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. Complete this question by entering your answers in the tabs below. Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Complete this question by entering your answers in the tabs below. Identify which company's stock you would recommend as the better investment