Below are ratios for two companies which operate in the

Assignment Help Financial Accounting
Reference no: EM13377899

Below are ratios for two companies which operate in the same industry.

 

Company A

Company B

P/E

27.8

63.0

Gross profit margin

59.1

66.2

Profit Margin

8.6

13.1

Quick

.8

0.5

Current

1.2

0.65

Debt-to-equity

.45

0.78

Return on equity

29.0

26.9

Return on assets

16.8

28.2

Dividend yield

1.7

1.2

Dividend payout

44.0

67.0

Required:

Evaluate the companies as a potential investment based on the given ratios.

Reference no: EM13377899

Questions Cloud

1 suppose z follows a standard normal distribution ie a : 1. suppose z follows a standard normal distribution i.e. a normal distribution with mean 0 and variance 1.a. what is
Question 1in 2011 jeffrey company disposed of a segment of : question 1in 2011 jeffrey company disposed of a segment of its business and incurred a pretax loss on the disposal of
A frim determines that x units of its product can be sold : a frim determines that x units of its product can be sold daily at p dollars per units per day is cx 120-12p and where
Irrigation improves the yield of strawberries per acre : irrigation improves the yield of strawberries per acre measured in pints according to the fucntion s -w-22 50 where s
Below are ratios for two companies which operate in the : below are ratios for two companies which operate in the same industry.nbspcompany acompany bpe27.863.0gross profit
Problem below are current year financial statements for two : problem below are current year financial statements for two companies in the same industries and direct competitors.
Suppose z follows a standard normal distribution ie a : suppose z follows a standard normal distribution i.e. a normal distribution with mean 0 and variance 1.a. what is the
Problem you have the opportunity to invest 10000 in one of : problem you have the opportunity to invest 10000 in one of two companies that are part of the same industry. the only
Suppose a bars constant marginal cost per beer is 360 and : suppose a bars constant marginal cost per beer is 3.60 and it was making 40 cents per beer in variable profit without

Reviews

Write a Review

Financial Accounting Questions & Answers

  Does the company conduct business internationally

Does the company conduct business internationally, what are the company's primary products and/or services and who is the chief executive officer of the company and who is the auditor for the company

  Computation of depreciation and cost of good soldstanislaw

computation of depreciation and cost of good sold.stanislaw timber company owns 9000 acres of timberland purchased in

  A us multinational is contemplating a production facility

a us multinational is contemplating a production facility in the uk. the production will be sold locally in the uk.

  What is advertising elasticity at a price

assuming the given advertising budget. What is advertising elasticity at a price of $2? Give an interpretation of the advertising coefficient.

  What dollar amount of sales must be achieved to reach

The company must pay $28,000 in income tax if it achieves the goal. The contribution margin ratio is 30%. What dollar amount of sales must be achieved to reach the goal if fixed costs are $64,000? SHOW YOUR WORK

  What minimum price would be acceptable

what minimum price would be acceptable? What qualitative factors should Big Al’s considered before agreeing to accept the special order?

  Evaluate free assets

For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $170,800?

  Illustrate what should campbell record enacted tax rates

What should Campbell record as a net deferred tax asset or liability for the year ended Dec 31 2011 assuming that the enacted tax rates in effect are 40% in 2011 and 35% in 2012?

  Illustrate what amount should farley report as allowance

During 2009, Farley wrote off $650,000 of accounts receivable. Credit sales for 2009 were $18,000,000. In its December 31, 2009 balance sheet, illustrate what amount should Farley report as allowance for uncollectible accounts? f common shares is..

  Questionthe following facts relate to a no cancelable lease

questionthe following facts relate to a no cancelable lease agreement among earth leasing corporation and new moon

  Accounting and the time value of money

Current and Future computations of a single sum of money and current and Future computations of an annuity.

  Find the price at which the firm sells the product

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-3). Find the price at which the firm sells the product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd