TUITIUITIVUIK Score: 0 of 1 pt 3 of 10 ( complete HW Score P3-20 (similar to) The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of enot papers. Some financial statement value for each company analysis that compares the firms financial leverage and profitability a. Calculate the following debt and coverage ratios for the two companies. Dloun their financial risk and ability to cover the costs in relation to each other. (1) Debt ratio (2) Times interest earned ratio b. Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other. (1) Operating profit margin (2) Net profit margin (3) Return on total assets (4) Return on common equity of Pelicans c. In what way has the larger det of Timberland Forest made it more proftable than Pelican PaperWhat are the risks that Timberland's Investors undertake when they choose to purchase ta stock Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet) Item Pelican Paper, Inc. Timberland Forest, Inc. Total assets $0.900.000 $0,000.000 Total equity (all common) 9.200.000 5,200.000 Total debt 700.000 4.700.000 Annual interest 70.000 470,000 Total sales 24.000.000 24,000,000 EBIT 6,000,000 6,000.0 Earnings available for common stockholders 3,542,400 3,312,000 CA Print Done AI T4 remaining