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Question 2 : Using the definitions we introduced in class, calculate the following financial ratios for ABC Inc and for its peer firms for the
Question :
Using the definitions we introduced in class, calculate the following financial ratios for ABC Inc and
for its peer firms for the year Round all numbers to two digits and tabulate the results in a table
similar to the one below.
Part :
Based on your analysis in Question briefly answer the following questions about how ABC
compares relative to its peers.
How does ABCs quick ratio compare relative to its peers? Is it in a better or worse position to
meet its shortterm obligations relative to its peers?
How do ABCs debt management ratios compare relative to its peers? Is it in a better or worse
position to meet its interest expenses?
How does ABCs ROE compare relative to its peers?
Based on the components of the DuPont Equation, explain why ABCs ROE is higherlower
relative to its peers.
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