Use the information on the last two pages to answer questions $3-5$

Which firm is more efficient? Why?

Which firm would be considered a growth firm? Why?

Which firm would be recommended by Ben Graham? Why?

IBM has a curr$$nt stock price of $$187\mathrm{.}42$ with $920,000,000$ shares outstanding and net income of

$$6,920,000,000.$ There are $$127,250,000,000$ in total assts. It has a debt to equity ratio of $4\mathrm{.}5$

and a profit margin of $12\%.$

a$)$ What is the equity multiplier?

b$)$ What is Total Asset Turnover?

JBL has a Price to Earnings $($PE$)$ ratio of $21,$ a total debt ratio of $0\mathrm{.}56$ and a price of $$125.$ If total

assets are $$19\mathrm{.}25B$ and there are $127$ M shares outstanding.

a$)$ What is the market to book ratio $($MB$)?$

b$)$ What is Return on Equity $($ROE$)?$