Question
1. Which of the two companies, GPS Corporation or Tru, Inc finances a higher percentage of its assets by borrowed funds relative to funds invested
1. Which of the two companies, GPS Corporation or Tru, Inc finances a higher percentage of its assets by borrowed funds relative to funds invested by shareholders as measured by the debt to equity ratio in 2021?
2. Which of the two companies, GPS Corporation or Tru, Inc., indicates a higher profitability during the period 2017-2021 without regard to the sources of financing as measured by the return on assets ratio?
3. Which of the two companies, GPS Corporation or Tru, Incindicates a higher effectiveness of employing resources provided by owners during the period 2017-2021 as measured by the return on shareholders equity ratio?
4. Management is using its borrowed funds to enhance the earnings for shareholders of (a) GPS Corporation, (b) Tru, Inc., (c) both firms, or (d) neither firm during the period 2017- 2021?
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Year Debt to Equity Ratio Trend ($ in 000s) Company / Year (ANI) Null 2012 GPS Tru 2.4 2013 2.2692 2.2049 2.2 2.1084 2.1384 2.0750 2.0777 2014 2015 2016 2017 2018 2019 2.0 1.9807 1.8626 1.8190 1.8219 1.8 2021 1.6 1.4 "Debt to equity ratio' 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 "Rate of Return on Shareholders" (S in 000s) Company / Year GPS 2019 Tru 2019 2017 2018 2020 2021 2017 2018 2020 2021 0.34 0.32 31.34% 30.29% 0.30 0.28 27.2696 27.17% 0.26 0.24 22.42% 0.22 0.20 19.36% 18.599 18.28% 0.18 alue 16.21% 0.16 0.14 12.61% 0.12 0.10 9.5% 9.7% 9.6% 8.8% 8.09 0.08 6.0% 5.9% 5.9% 0.06 5.4% 4.5% 0.04 0.02 0.00 "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of "Rate of """" """"Rate of "Rate of return return return returno. return.. return o.. return.. return o.. return.. return o.. return.. return o.. return.. return o.. return.. return o.. return.. return... return.. return oStep by Step Solution
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