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Ratios Calculated Year 1 Year 2 Year 3 Price-to-free-cash-flow 5.60 7.28 8.15 Inventory turnover 11.20 13.44 15.05 Debt-to-equity 0.70 0.74 0.89 Based on the preceding

Ratios Calculated

Year 1

Year 2

Year 3

Price-to-free-cash-flow 5.60 7.28 8.15
Inventory turnover 11.20 13.44 15.05
Debt-to-equity 0.70 0.74 0.89

Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply.

A The market value of Green Caterpillar Garden Supplies Inc.s common shares declined over the three years.

B A plausible reason why Green Caterpillar Garden Supplies Inc.s price to free cash flow ratio has increased is that investors expect higher cash flow per share in the future.

C The companys creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.

D An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better

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