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Problem 17-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two
Problem 17-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. For both companies compute the profit margin ratio. For both companies compute the total asset turnover For both companies compute the return on total assets. For both companies compute the return on equity. \begin{tabular}{|c|c|c|c|c|c|} \hline 2AProfMarRatio & 2ATotAssetTurn & 2ARetonTotAssets & 2ARetOnEquity & 2APriceEarnRatio & 2A Div Yield \\ \hline \end{tabular} Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. Assuming that each company's stock can be purchased at $100 per share, compute their dividend yield Identify which company's stock you would recommend as the better investment
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