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3. You have the opportunity to invest $10,000 in two companies in the pharmaceuticals industry. The only information you have is below. Which company would
3. You have the opportunity to invest $10,000 in two companies in the pharmaceuticals industry. The only information you have is below. Which company would you select? Justify your choice with a detailed explanation regarding the significance of each financial ratio. (15 POINTS) Ratios for Current Year Company A Company B Industry Average Current 1.30 1.00 1.20 Quick 0.80 0.75 0.80 Debt-to-equity 0.90 3.45 1.10 Inventory turnover 18.20 12.00 12.20 Price/earnings 22.01 19.20 21.25 Dividend yield 1.84 1.02 1.04
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