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Question 1 Read the table below for 3 firms: a bubble tea store, a bike store, a consulting firm. 0.5 Debt-equity ratio Inventory Turnover Current
Question 1 Read the table below for 3 firms: a bubble tea store, a bike store, a consulting firm. 0.5 Debt-equity ratio Inventory Turnover Current Ratio Net profit margin Receivables Turnover COMPANY A B 0.2 0.3 4 60 1.8 0.9 3.8% 6.4% 30.0 1.28 20% 6.0 --- (a) (6) Distinguish each company and discuss the reason for your identification. (12 marks) Judge whether the following statement is true and explain your answer: "If the managers focus on the current stock value, they will tend to overemphasize short-term profits at the expense of long-term profits." (6 marks)
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