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Q. You are provided with the following information of a fictitious company, X and A for answering the following questions. company X company A

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Q. You are provided with the following information of a fictitious company, X and A for answering the following questions. company X company A ROE 15% 3.69% Debt to Equity 1.5 5.09 Current ratio 2.8 1.13 Quick ratio 1.7 0.12 Assume you are considering becoming a short term creditor for either Company X or A. That is, you will only be providing credit to only one of them. Explain which company you would prefer to provide credit and why you have chosen this company.

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