1. You are given the following financial data for Pelican Paper Inc. and Timberland Forest Inc.

	Pelican Paper	Timberland
Total assets	$10,000,000	$10,000,000
Common stockholder equity	$ 9,000,000	$ 5,000,000
Total debt	$ 1,000,000	$ 5,000,000
Interest expense	$ 100,000	$ 500,000
Total Sales	$25,000,000	$25,000,000
EBIT	$ 6,250,000	$ 6,250,000
Earnings available for common stockholders	$ 3,690,000	$ 3,450,000

1) Calculate each firms:

a) total asset turnover

b) equity ratio

c) financial leverage multiplier

2) Use Dupont system formula to calculate each firm's ROA and ROE.