40) Company A and Company B are in the same industry and have the following ratios. a b current ratio:1.2 .89 debt/equity: .20.40 total asset turnover: 1.92.1 Return on Equity: 12.4% 14.8% Dividend...

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40) Company A and Company B are in the same industry and have the following ratios.

a b

current ratio:1.2 .89

debt/equity: .20.40

total asset turnover: 1.92.1

Return on Equity: 12.4% 14.8%

Dividend Payout ratio: 25% 10%

Discuss the relative natures of the two companies in terms of risk and return. Identify the more growth-oriented firm and justify your selection. Support your discussion and conclusions by referring to the ratios.


Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
40) Company A and Company B are in the same industry and have the following ratios. a b cu
ent
atio:1.2 .89 debt/equity: .20.40 total asset turnover: 1.92.1 Return on Equity: 12.4% 14.8% Dividend
Payout ratio: 25% 10% Discuss the relative natures of the two companies in terms of risk and return.
Identify the more growth - oriented firm and justify your selection. Support your...
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