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(VI) (12) Jagger Corporation, a producer of computer chips, needs to raise long-term external financing to fund the purchase of property, plant, and equipment. Using

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(VI) (12) Jagger Corporation, a producer of computer chips, needs to raise long-term external financing to fund the purchase of property, plant, and equipment. Using the following data for Jagger and Sagger (major competitor), perform a ratio analysis to determine: (A) (6) Whether the solvency position can support a long- term loan to Jagger? Why2 funds longt (B) (6) Whether an equity investor (common stock) shouldmt to Jagger? Why? Ratio Jagger Sagger (Competitor) Current Ratio Collection Period Inventory Turnover Debt Ratio Times Interest Earned Free Cash Flow Return on Equity Return on Assets Asset Turnover 37 Days 5.5X 78% 7.1 $232M 33.1% 23% 3.85X 3.75 29 Days 7.8X 47% 12 $689M 27.5% 14.9% 2.75X analysis of each appropriate ratio. Also You will receive 2 Point include in your (A) Solvency Decision (Lend long-term?) ) Profitability Decision (Buy common stock?)

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