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The following information for 2 0 2 3 is provided for two public companies in the same industry: . . . . . . .
The following information for is provided for two public companies in the same industry:
A Ltd B Ltd
Number of Shares issued.......................
$ $
Sales........................................................................
COGS
Other Expenses.........................................................
Dividends paid
Market price per share................................................
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? marks
b About which company are investors more optimistic? marks
c In which company would they prefer to buy shares if their goal is dividend income? marks
d In which company would investors prefer to buy shares for growth potential? marks
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