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Solve practice problem 4-23 (page 133, Value: 10 pts.) Brigham, Eugene F., Joel F. Houston (2007). Fundamentals of Financial Management, 11th ed., Mason, H: Thomson/South-Western,
Solve practice problem 4-23 (page 133, Value: 10 pts.) Brigham, Eugene F., Joel F. Houston (2007). Fundamentals of Financial Management, 11th ed., Mason, H: Thomson/South-Western, 2007. ISBN #0324319800.
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-23 Ratio analysis Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the extended Du Pont equation for both Barry and the industry. c. Outline Barry's strengths and weaknesses as revealed by your analysis. d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2005 . How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) Barry Computer Company: Balance Sheet as of CStep by Step Solution
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