ST is a high-growth software corp that develops software and communications for devices for electricity "smart grids" for both residential and commercial use. ST outsources production of the physical smart boxes to asian suppliers. ST has operated at a loss and isn't expected to generate income and positive cash flow for another 12 months. Giant mart is nationwide retailer of consumer non-durables. GM which saw rapid growth over the last 15 years expects future growth to approx mirror that of the economy. GM prides itself in selling quality products at the lowest possible prices. recently GM stores have begun adding grocery items to their product mix in a new trend to attract customers.

1. If you were to prepare pro-forma's for these two companies, which would likely have the highest EFN and why?