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The following information is available for Alpha and Beta, which operate in the same industry: Ratios Current Ratio Quick Ratio Debt (to Assets) Ratio

 

The following information is available for Alpha and Beta, which operate in the same industry: Ratios Current Ratio Quick Ratio Debt (to Assets) Ratio Interest Coverage Ratio Alpha 4.0:1 (4.0 times) 0.6:1 (0.6 times) 80% 3.1 times. Beta 2.3:1 (2.3 times) 1.2:1 (1.2) times) 25% 8 times Required: Compare the liquidity and capital structure of Alpha and Beta. In your answer, explain which company you believe is the better investment choice and why.

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