Referring to 2010 only:

A.What value for the profit margin would have brought Medifast into balanced growth?

B.What value for asset turnover would have brought Medifast into balanced growth?

C. What value for financial leverage would have brought Medifast into balanced growth? Additionally, what % of assets was financed with equity given the leverage ratio of 1.6, and what % of assets would have been financed with equity given your leverage ratio consistent with balanced growth?

Medifast, Inc., is a producer and marketer of weight-loss meals and other health and weight-loss products. Following are selected financial data for the company for the period 20062010. 2006 2007 2008 2009 2010 Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%). 6.00 99.50 1.33 1.61 46.80 7.00 100.00 2.02 1.69 84.60 4.60 100.00 1.92 1.57 13.10 5.20 100.00 2.07 1.57 25.90 7.20 100.00 2.64 1.64 57.10 Medifast, Inc., is a producer and marketer of weight-loss meals and other health and weight-loss products. Following are selected financial data for the company for the period 20062010. 2006 2007 2008 2009 2010 Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%). 6.00 99.50 1.33 1.61 46.80 7.00 100.00 2.02 1.69 84.60 4.60 100.00 1.92 1.57 13.10 5.20 100.00 2.07 1.57 25.90 7.20 100.00 2.64 1.64 57.10