Suppose that you want to select the most comparable firm to your case firm from the nine potential comparable firms identified in the same industry your case firm belongs to. If you think that the most comparable firm to your case firm should have margins (i.e., profitability measures) closest those of case firm, which firm should be selected most comparable from the list below?

Identify the second most comparable firm to your case firm using the procedure and explain why it is not as comparable as the most comparable firm using margin numbers in the table below.

	Margins
Comparable Company	Gross Profit Margin	EBITDA Margin	EBIT Margin	Net Income Margin
Company 1	5.30%	6.0%	4.8%	2.60%
Company 2	18.7%	4.1%	2.8%	1.60%
Company 3	42.4%	6.1%	3.5%	-0.90%
Company 4	16.0%	6.7%	5.9%	3.70%
Company 5	9.0%	6.8%	6.0%	2.80%
Company 6	54.8%	14.4%	11.3%	7.70%
Company 7	17.4%	10.4%	7.6%	4.90%
Company 8	16.6%	6.9%	4.8%	4.95%
Company 9	5.9%	8.3%	6.0%	2.70%
Case Firm	18.80%	4.60%	1.80%	0.07%