The following shows the ratio analysis of Traction Software relative to the ABC Corporation. Evaluate the company relative to history and the other firm. Include an explanation of each ratio as part of your answer. Tell the company story as signaled by the ratios. Which company will bondholders be more attracted to? Stockholders? Which company is more risky? Calculate the per share price for each year and company (Hint: use the P/E and EPS) Which company would you invest in and why? Traction Software

PLease explain the question and give detail answer

Traction 2007 2008 ABC Company 2008 Ratio/Year Price to Earning 13 15 20 1.06 1.16 1.82 Current Inventory turnover 10.4 11.37 12.45 Quick 0.57 0.63 1.1 Average collection period 29.6 das 353 days 20.2 days Total asset turnover 5.46 days 7.98 days 392 days 0.56 0.47 1.05 Earnings per share Debt ratio 0.66 0.53 0.55 6.3 5.6 4.8 Times interest earned 13% Net profit margin 55% 25% NMF NMF 15.60% NMF NMF 34.70% ROA ROE Beta 0.96 1.02 1.35 NMF-Not meaningful