1.The Gold Company earned 18 percent on equity, whereas the Blue Company earned only 14 percent on equity. Does this mean that Gold will grow faster than Blue? Explain. 4 Marks

B) Give an example of how a cash flow ratio might differ from a proportion of debt ratio. Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial risk, while the proportion of debt ratio indicates low risk), which ratios would you follow? Justify your choice