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13 le price to earnings (P/E) ratio? 2) Company X and Company Y are in the same industry and have the following ratios. Industry Average
13 le price to earnings (P/E) ratio? 2) Company X and Company Y are in the same industry and have the following ratios. Industry Average 1.1 0.3 Current ratio Debt/equity Total as set turnover Net profit margin Return on equity Dividend payout ratio Company X 1.2 0.20 1.9 4.2% 12.4% 25.0% Company Y 0.89 0.40 2.1 3.8% 14.8% 10.0% 2.5 4.0% 15.0% 20.0% 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. 13 le price to earnings (P/E) ratio? 2) Company X and Company Y are in the same industry and have the following ratios. Industry Average 1.1 0.3 Current ratio Debt/equity Total as set turnover Net profit margin Return on equity Dividend payout ratio Company X 1.2 0.20 1.9 4.2% 12.4% 25.0% Company Y 0.89 0.40 2.1 3.8% 14.8% 10.0% 2.5 4.0% 15.0% 20.0% 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
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