Question: 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.
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All figures in millions
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Computronix
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Digitek
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Key Assumptions
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1996
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1996
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Dividend Payout
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40.0%
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20.0%
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Number of Shares
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200
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100
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Income Statement
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1996
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1996
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Sales
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$3,379.3
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$4,537.0
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EBIT
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$317.6
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$403.1
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Interest Expense
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$54.7
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$4.8
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Net Income
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$153.7
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$239.0
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Balance Sheet
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1996
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1996
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Average Assets
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$2,457.9
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$3,459.7
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Average Shareholders' Equity
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$1,113.3
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$2,347.3
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Market Data
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Market Price / Share at Beginning of Year
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$15.00
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$38.00
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Market Price / Share at End of Year
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$12.00
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$40.00
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