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Saved Hel The following information for 2019 is provided for two public companies in the same industry: ABC Ltd. ZYZ Ltd. Earnings per share. $10.50
Saved Hel The following information for 2019 is provided for two public companies in the same industry: ABC Ltd. ZYZ Ltd. Earnings per share. $10.50 $3.25 Dividends paid per share..... 2.50 1.50 Market price per share......... 120.00 28.00 Net sales............. 100,000 10,000 Gross profit 46,000 3,500 Profit............ 8,100 970 Required: Answer the following questions about the two companies and explain the reason for your answer. Use the information provided to calculate the ratios needed to support your answers. a. Based on the above information, which company is more profitable? (3 marks) b. About which company are investors more optimistic? Explain. (4 marks) c. In which company would investors prefer to buy shares for growth potential? Explain.(2 marks) O This question will be sent to your instructor for grading. ch a. Based on the above information, which company is more profitable? (3 marks) b. About which company are investors more optimistic? Explain. (4 marks) c. In which company would investors prefer to buy shares for growth potential? Explain.(2 marks) d. In which company would they prefer to buy shares if their goal is dividend income? (3 marks) ! This question will be sent to your instructor for grading. ch a. Based on the above information, which company is more profitable? (3 marks) b. About which company are investors more optimistic? Explain. (4 marks) c. In which company would investors prefer to buy shares for growth potential? Explain.(2 marks) d. In which company would they prefer to buy shares if their goal is dividend income? (3 marks) ! This question will be sent to your instructor for grading.
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