YOU MUST SHOW THE DETAILS OF HOW YOU DERIVED YOUR RATIOS 1. Compute net operating profit after tax (NOPAT) for 2014. Assume that the combined federal and state statutory tax rate is 37%. 2. Compute net operating assets (NOA) for 2014 and 2013. Where applicable, treat noncurrent investments as a non-operating item. (Hint: Assume that trading assets and long-term marketable equity securities are investments in marketable securities and are therefore, non-operating assets; also, footnotes reveal that the other longterm investments are mainly loan receivables and are, therefore, operating.) 3. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2014. 4. Demonstrate that RNOA = NOPM X NOAT. 5. Comment on the drivers of RNOA for the two companies. 6. Compute net non-operating obligations (NNO) for 2014 and 2013. Confirm the relation: NOA = NNO + Stockholders equity. 7. Compute return on equity (ROE) for 2014. 8. What is the non-operating return component of ROE for 2014? 9. Comment on the difference between ROE and RNOA. What inference can we draw from this comparison? REQUIRED: Compare the financial viability of the two companies (Intel and 3M), and provide a brief argument for why you will invest in any one of the two companies. You must provide a brief description of each company and its business. You must provide a comparative analysis of the ratios listed, and answer the related questions above. Your answers will be graded for its consistency with information reported on your ratio calculations and references to knowledge obtained from the course materials.