Shown below is the liabilities and stockholders equity section of the balance sheet for Sarasota Company and Ivanhoe Company. Each has assets totaling $4,015,000.

Sarasota Co.				IvanhoeCo.
Current liabilities		$303,000		Current liabilities		$383,000
Long-term debt, 10%		1,100,000		Common stock ($20 par)		2,930,000
Common stock ($20 par)		1,910,000		Retained earnings (Cash dividends, $316,000)		702,000
Retained earnings (Cash dividends, $237,000)		702,000
		$4,015,000				$4,015,000

For the year, each company has earned the same income before interest and taxes.

		Sarasota Co.		Ivanhoe Co.
Income before interest and taxes		$1,190,000		$1,190,000
Interest expense		110,000		0
		1,080,000		1,190,000
Income taxes (45%)		486,000		535,500
Net income		$594,000		$654,500

At year end, the market price of Sarasotas stock was $101 per share, and Ivanhoes was $63.50. Assume balance sheet amounts are representative for the entire year. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.) Which company is more profitable in terms of return on total assets?

(b) Calculate the return on common stock equity? Which company is more profitable in terms of return on common stockholders equity?

(c) Calculate the Net income per share. Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. d1) From the point of view of net income, is it advantageous to the stockholders of Sarasota Co. to have the long-term debt outstanding?

(e) What is the book value per share for each company? (Round answers to 2 decimal places, e.g. $6.85.)