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In 2021, Ajax Ltd

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In 2021, Ajax Ltd. completed a very successful year with an increase in its net income of over 20%. Most of this increase occurred because a new manufacturing plant was built almost exclusively through the use of borrowed funds. To conserve cash for further expansion, the board of directors increased the dividend in 2021 by only 3%. Because of this, the company’s share price rose by only 6% in that year. (a) What ratio increased the most in 2021: return on assets or return on common shareholders’ equity? Why? (b) Did the payout, price-earnings, and dividend yield ratios increase or decrease in 2021? Why? Calculate impact of other comprehensive income on profit margin.