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Summary information from the financial statements of two companies competing in the same industry follows. Required A. For both companies compute the (a) current ratio,
Summary information from the financial statements of two companies competing in the same industry follows. Required A. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) inventory tumover and (d) days' sales uncollected. B. Identify the company you consider to be the better short-term credit risk. C. For both companies compute the (a) return on total assets, and (b) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (c) price-earnings ratios and (d) dividend D. Identify which company's stock you would recommend as the better investment
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