Westfield Capital Management Co$$s equity investment strategy is to invest in companies with

low price$-$to$-$book ratios, while considering differences in solvency and asset utilisation.

Westfield is considering investing in the shares of either Jerry$$s Departmental Stores $($JDS$)$ or

Miller Stores $($MLS$).$ Selected financial data for both companies follow:

SELECTED FINANCIAL DATA AS OF MARCH $31,2006$

$($$ millions$)$ JDS MLS

Sales $$21,250$ $$18,500$

Fixed assets $5,7005,500$

Short$-$term debt Nil $1,000$

Long$-$term debt $2,7002,500$

Equity $6,0007,500$

Outstanding Shares

$($in millions$)$

$250400$

Stock Price $($$ per

share$)$

$51\mathrm{.}5049\mathrm{.}50$

Required:

a$.$ Compute each of the following ratios for both JDS and MLS:

$(1)$ Price$-$to$-$book ratio

$(2)$ Total$-$debt$-$to$-$equity ratio

$(3)$ Fixed$-$asset$-$utilisation $($turnover$)$

b$.$ Select the company that better meets Westfield$$s criteria