5a. Which firm would you prefer to give a short-term loan? Name the ratio/s you looked at to make your choice.

5b. Which firm would you prefer to give a long-term loan? Name the ratio/s you looked at to make your choice.

5c. Which firm is the most profitable? Name the ratio/s you looked at to make your choice.

5d. According to the DuPont Identity, which ratio is causing Firm As ROE to be higher than Firm Bs ROE?

FIRMA FIRM B Asset Turnover 0.64 Asset Turnover 0.61 Price-earnings Ratio 8. Price-earnings Ratio 23 1.3 Current Ratio 0.86 Current Ratio Profit Margin (%) 6.21 Profit Margin (%) 7.30 Financial Leverage Financial Leverage 3.23 Times Interest Earned Times Interest Earned 14.1 Return on Equity (%) 33 Return on Equity (%) 14