Your boss has asked you to calculate the profitability ratios of Demham Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Demham Inc.'s income statement for the last two years. The company had assets of $8, 225 million in the first year and $13, 157 million in the second year. Common equity was equal to $4, 375 million in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new stock in the second year. Calculate the profitability ratios of Demham Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. A higher operating profit margin than the industry average indicates either lower operating costs, higher product pricing, or both. An increase in a company's earnings means that the net profit margin is increasing. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. If a company issues new common shares but its net income does not increase, return on common equity will increase