Question
For each of the two companies, give brief comments (within 30 words) on their liquidity performance. (2 marks) (c) For each of the two companies,
For each of the two companies, give brief comments (within 30 words) on their liquidity performance. (2 marks) (c) For each of the two companies, give brief comments (within 70 words) on their assets management efficiency. (3 marks) (d) For each of the two companies, give brief comments (within 100 words) on their financing capital structure. (4 marks) (e) For each of the two companies, give brief comments (within 50 words) on their profitability performance. (2 marks) (f) Compute the return on equity (ROE) of both companies using the Du Pont Identity formula. Explain the difference in ROE between the two companies and advise which company has a better return on its equity (ROE) and which company will be more likely to incur a higher financial risk (within 150 words). (7 marks) (g) Which of the two companies, as judged by all the above analysis, would you choose to invest? Explain briefly (within 50 words).
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