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Use the following information for the question(s) that follow. Patco and Ramsco are competitors in the same industry and have the following ratios. Industry
Use the following information for the question(s) that follow. Patco and Ramsco are competitors in the same industry and have the following ratios. Industry Average Patco Ramsco Current ratio 1.2 1.89 1.5 Debt/equity 0.60 0.40 0.45 Total asset turnover 2.6 2.1 2.5 Net profit margin 5.2% 4.8% 5.0% Return on equity 16.4% 13.8% 15.0% Dividend navout ratio 15.0% 22.0% 20.0% A. Ramsco is using leverage more aggressively than Patco. B. Ramsco is reinvesting a higher percentage of its earnings in the business than Patco. C. Ramsco is using assets more efficiently than Patco. D. Ramsco is more liquid than Patco.. rts) possible
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