The relationship between financial leverage and profitability pelican paper, inc., and timberland forest, inc., are rivals in the manufacture of craft papers. some financial statement values for each company follow use them in a ratio analysis that compares the firms' financial leverage and profitability. a. calculate the following debt and coverage ratios for the two companies. discuss their financial risk and ability to cover the costs in relation to each other. (1) debt ratio (2) times interest earned ratio b. calculate the following profitability ratios for the two companies. discuss their profitability relative to each other. (1) operating profit margin (2) net profit margin (3) return on total assets (4) return on common equity c. in what way has the larger debt of timberland forest made it more profitable than pelican paper? what are the risks that timberland's investors undertake when they choose to purchase its stock instead of pelican's?

Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u. s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak