Mordett is a company with the same assets as Nodett and Somdett but a debtto-equity ratio of 1.0 and...

Mordett is a company with the same assets as Nodett and Somdett but a debtto-equity ratio of 1.0 and an interest rate of 9%. What would its net profit and ROE be in a bad year, a normal year, and a good year?

What were GI’s ROE, P/E, and P/B ratios in the year 2007? How do they compare to the industry average ratios, which were:

ROE = 8.64% P/E = 8 P/B = .69

How does GI’s earnings yield in 2007 compare to the industry average?