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Selected ratios for the current year for three companies in the office furniture industry follow: Ratio Youkea The Trick Peon's Dividend Yield 3.0% 2.1% 0.8%

Selected ratios for the current year for three companies in the office furniture industry follow:

Ratio Youkea The Trick Peon's
Dividend Yield 3.0% 2.1% 0.8%
Price Earnings 23.6 times 18.7 times 28.2 times
Payout Ratio 3.6% 4.4% 2.0%
Debt to Assets 62% 73% 65%
Return on Equity 25.7% 29.7% 26%

1. Based on the above ratios which company do investors favour for future growth and investment?

2. Based on the above ratios which company is considered the investment with the most risk?

3. Based on the above ratios which company would investors choose if dividend income was desired?

4. Based on the above ratios which company has used leverage to increase its return to investors?

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