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Company 1 2 3 Debt Equity Ratio 0.2 0.3 0.5 Inventory Turnover 4 60 - Current Ratio 1.8 0.9 1.28 Net Profit Margin 3.8% 6.4%
Company | |||
1 | 2 | 3 | |
Debt Equity Ratio | 0.2 | 0.3 | 0.5 |
Inventory Turnover | 4 | 60 | - |
Current Ratio | 1.8 | 0.9 | 1.28 |
Net Profit Margin | 3.8% | 6.4% | 20% |
Receivables Turnover | 30 | - | 6.0 |
Part A) Which of the following companies could potentially be?
a Bubble-Tea Store
a Bike Store
a Consulting Firm
Provide a reason to Justify your answers.
Part B) If the managers focus on the current stock value, they will tend to overemphasize short-term profits at the expense of long-term profits?
Is this statement true? Justify Why or Why not?
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