The steps you will follow for this project are as follows: 1) Download the Excel data file. 2) Perform the requirements on the data file. 3) Check your work in the Excel file with these check figures. 4) Use your Excel file to answer the six multiple choice questions below. (You will have to scroll down to see all of the questions.) Resources A) Information on how to update Excel and Office 365 B) If you do not have Office 365, click here to learn how to get it for free. This project only has one attempt. Review the check figures with your data file results before answering the questions. If your check figures do not match, do not proceed with answering the questions until you have asked for assistance from your instructor. Using the analysis of the average debt to equity ratio you created for Lopez & Jones, which of the following is not a correct statement? O A. Lopez & Jones was realtively flat across the 5 years O B. Lopez & Jones reports the highest ratio O C. The same industry group had the highest debt - to - equity ratio O D. The same industry group decreased significantly from 2015 to 2017 Using the analysis of the average debt to equity ratio you created for Lopez & Jones, Lopez & Jones's average debt to equity ratio was highest in: O A. 2017 O B. 2018 O C. 2016 O D. 2015 Using the analysis of the average interest coverage ratio you created for Lopez & Jones, the highest interest coverage ratio reported by Lopez & Jones occurred in: O A. 2016 O B. 2019 O C. 2018 O D. 2017Using the analysis of the average long-term debttc total assets ratio you created for Lopez & Jones, the largest ratio is found for the: O A. Close competitor group in 2016 O B. Same industry group in 2016 O C. Same industry group in 2018 O D. Lopez 8: Jones in 2017 Using the analysis of the average capital expenditure to total assets ratio you created for Lopez & Jones, which company or group exhibited the lowest ratio in 2017: O A. Lopez 8: Jones 0 B. Close competitor O C. Same industry 0 D. All companies or groups repored the same level in 2017 Using the analysis of the assessment of added value that you created for Lopez & Jones, which of the following statements is correct: 0 A. The Added Value for the close competitor group is lower than the same industry group for each year 0 B. The close competitor group reports the same Added Value irorn 2016 to 2019 O C. The same industry group reports a constant Added Value each year 0 D. The Added Value for the close competitor exceeds Lopez & Jones's each year Solvency measures a company's ability to pay off its long-term obligations when due. If a company has too much debt, the rm may be unable to repay its debt and be forced to declare bankruptcy. In this case, you will analyze common measures of solvency. The nancial statement data found in the Excel spreadsheet is an excerpt of three evaluation groups' nancial statements over ve years, the company, Close Competitor, and Same Industry. All amounts are stated in millions of dollars. Requirements for the Excel analysis 1. Analysis of solvency: A. Calculate solvency ratios for the company, its close competitors, and industry competitors in the previous ve years. Total Liabilities Total Stockholders' Equity a. Debt-to-equity ratio = Net Income + Interest Expense + Tax Expense b. Interest Coverage Ratio = _ Interest Payments (Paid) Long-Term Debt c. Long-Term Debt to Total Asset Ratio = Total Assets B. Create a visualization of the trend of solvency ratios for the company, its close competitors, and industry competitors. For the company, close competitors, and industry competitors graph the average of the ratios. C. Comment on the trends in the solvency ratios for the company, its close competitors, and industry competitors. 2. Analysis of Capital Expenditures and Financing: A. Compute the ratio of capital expenditures to total assets for the company, its close competitors, and industry competitors. The formula of capital expenditures to total assets is the following: Capital Expenditures Capital Expenditure to Total Asset Ratio = Total Assets B. Create a visualization of the trend in the ratio of capital expenditures to total assets for the company, its close competitors, and industry competitors. For the company, close competitors, and industry competitors, graph the average of the ratios. C. Comment on the relationship in the trends in the ratio of capital expenditures to total assets for the company, its close competitors, and industry competitors. 3. Comparison of return on capital employed (ROCE) and weighted average cost of capital (WACC): A. Calculate the ROCE for the company, its close competitors, and industry competitors for all years. B. To determine the value added by capital expenditure investments, compare the ROCE to the WACC. Subtract the WACC from the ROCE and draw the trend graph of difference for the company, its close competitors, and industry competitors. For the company, close competitors, and industry competitors, graph the average of the ratios. C. Comment on the relationship between ROCE and WACC for the company, its close competitors, and industry competitors. D. Did the company's investments add value each year? What percentage of close competitors added value each year? What percentage of companies in the same industry added value? The formula of ROCE is the following: EBIT Net Income + Interest Expense + Tax Expense Capital Employed Total Assets - Current Liabilities Return on Capital Employed = -m Check figures R1 .A. Average Debt-to-Equity Ratio for the Same Industry, 2019 R1 .3. Average Interest Coverage Ratio for the Same Industry, 2019 R1 .0. Average Long-Term Debt to Total Asset Ratio for the Same Industry, 2019 R2. Average Capital Expenditure to Total Asset Ratio for the Same Industry, 2019 R3.A. Average ROCE-WACC for the Same Industry, 2019 R33. Assessment of Value Added for the Same Industry, 2019