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Based on the business model and economics of the following hypothetical company, predict whether the following ratios will be high or low along with your reasoning (can be as brief as one sentence for each measure). The company sells a widget that is qualitatively no different than its competitors. It is easy to start a firm within this market but difficult to liquidate once operations have begun; this leads to many competitors in the industry. Widgets take a long time to produce so production must take place using an estimated guess of future orders while keeping a large stock of widgets to meet any surprise demand. Furthermore, advertising does not seem to significantly change market share so no firms advertise to build a brand name. Please predict and explain briefly, referencing the above description, whether the following ratios of the company should be “high” or “low.” Profit Margin  Days Inventory Outstanding  ROE.

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