Question 1 The table below shows the ratios for three companies: airline, discount clothing store, accounting firm. COMPANY 2 3 0.2 1.2 0.7 Debt-equity Inventory Turnover 12.0 0.3 Current Ratio 2.5 1.5 1.3 Sales/Total Assets 4.0 1.7 7.0 Sales/Receivables 40.0 12.3 7.2 (a) Interpret the ratios in the table to identify the three (3) firms and briefly discuss your reasons using the following format: Company (Number) is the Reason: (12 marks) (b) Briefly discuss two (2) reasons why it is difficult to use ratios to compare firms from different countries. (4 marks) (c) Briefly discuss the basis for Mogdiliani and Miller (MM) to claim in their Proposition 1 that capital structure does not matter. (4 marks)