1. Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: net income = $580,000, total debt = $12.8 million, debt ratio = 43%. What is Tikki's ROE for 2008?

1.95%

10.53%

3.42%

4.53%

2. DuPont Analysis Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.5%. The firm's debt ratio was 35%, sales were $30 million, and the capital intensity ratio was .80 times. What is the net income for PJ's last year? (Do not round intermediate steps.)

$3.75m

$3.00m

$3.75 m

$1.95m