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PA13-7 Analyzing an Investment by Comparing Selected Ratios [LO 13-5] You have the opportunity to invest $10,000 in one of two companies from a single
PA13-7 Analyzing an Investment by Comparing Selected Ratios [LO 13-5] You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom third. Ratio Current Inventory turnover Debt-to-assets Times interest earned Pricelearnings Company A Low High Low High High Company B High Low Average Average Average Required: Which company would you select? Company A Company B
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