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Need answers to P-F:17-28A questions 1. and 2. on the third image please. All the images are in order from top to bottom. P-F:17-28A Using
Need answers to P-F:17-28A questions 1. and 2. on the third image please. All the images are in order from top to bottom.
P-F:17-28A Using ratios to decide between two stock investments Learning Objective 4 Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitalized 1. Digitalized e. $4.25 Corp. and Every Zone, Inc. and have assembled the following data. Selected income statement data for the current year: Selected balance sheet and market price data at the end of the current year: Selected balance sheet data at the beginning of the current year: 17-48 Financial chapter 17 Your strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially. Assume that you have analyzed all other factors and that your decision depends on the results of ratio analysis. Requirements 1. Compute the following ratios for both companies for the current year: a. Acid-test ratio e. Earnings per share of common b. Inventory turnover stock c. Days' sales in receivables f. Price/earnings ratio d. Debt ratio g. Dividend payout 2. Decide which company's stock better fits your investment strategyStep by Step Solution
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