Your boss has asked you to calculate the profitability ratios of Cute Camel Woodcraft Company and make comments on its second-year performance as compared to its first-year performance. The following shows Cute Camel’s income statement for the last two years. The company had assets of $10,575,000 in the first year and $16,916,400 in the second year. Common equity was equal to $5,625,000 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. Cute Camel Woodcraft Company Income Statement For the Year Ending December 31 Year 2 Year 1 Net Sales $5,715,000 $4,500,000 Operating costs less depreciation and amortization 1,610,000 1,495,000 Depreciation and amortization $285,750 $180,000 Total Operating Costs 1,895,750 1,675,000 Operating Income (or EBIT) $3,819,250 $2,825,000 Less: Interest 515,599 367,250 Earnings before taxes (EBT) $3,303,651 $2,457,750 Less: Taxes (40%) 1,321,460 983,100 Net Income $1,982,191 $1,474,650
Calculate the profitability ratios of Cute Camel Woodcraft Company in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Value Year 2 Year 1 Operating profit margin 62.78% Net profit margin 36.09% Return on total assets 14.75% Return on common equity 27.72%

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An important source of public scrutiny is "watchdogs." these are: the efforts of a firm's competitors, including how often the competitors attack the firm's strategies. taxpayer-supported government agencies that limit a firm's ability to compete in foreign markets. companies designated by the government to only produce products that support the government defense program. socially conscious groups that make it their mission to measure the social responsibility levels of businesses, and provide consumers with their opinions about the level of corporate responsibility of various companies.

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u. s. government's e find the expected value of perfect information about the u. s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.