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problem: The following data taken from a 1996 financial statement of Computronics Corporation and Digitek Corporation [all figures are in the $ millions except for share amounts. evaluate and contrast the financial performance of the two companies using financial ratios discussed.

All figures in millions	Computronix	Digitek
Key Assumptions	1996	1996
Dividend Payout	40.0%	20.0%
Number of Shares	200	100

Income Statement	1996	1996
Sales	$3,379.3	$4,537.0
EBIT	$317.6	$403.1
Interest Expense	$54.7	$4.8
Net Income	$153.7	$239.0

Balance Sheet	1996	1996
Average Assets	$2,457.9	$3,459.7
Average Shareholders' Equity	$1,113.3	$2,347.3

Market Data
Market Price / Share at Beginning of Year	$15.00	$38.00
Market Price / Share at End of Year	$12.00	$40.00

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916276

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