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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 2023 is provided for two public companies in the same industry:
.................................................................................. A Ltd. B Ltd.
Number of Shares issued....................... 5,0001,200
...................................................................... $ $
Sales........................................................................ 150,00025,000
COGS .......................................................................75,00010,000
Other Expenses......................................................... 64,50012,500
Dividends paid ...........................................................3,0001,000
Market price per share................................................ 15.0013.00
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? (4 marks)
b. About which company are investors more optimistic? (4 marks)
c. In which company would they prefer to buy shares if their goal is dividend income? (2 marks)
d. In which company would investors prefer to buy shares for growth potential? (2 marks)

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