Take the role of an investment analyst at prudential Bache. It is your job to recommend investments

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Take the role of an investment analyst at prudential Bache. It is your job to recommend investments or your clients. The only information you have are some ratio values for two companies in he pharmaceuticals industry.

Write a report to prudential Bache's investment committee. Recommend one company's stock over the other. State the reasons for your recommendation.

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Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

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Question Posted: Jan 23, 2017 02:42 AM

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Take the role of an investment analyst at prudential Bache. It is your job to recommend investments

Question:

Ratio Healthtime Mocek Return on equity 21.5% 32.3% Return on assets 16.4% Days' sales in receivables 42 36 Inventory turnover Gross profit percentage 51 % 53% Net income as a percentage of sales 8.3 % 7.2 % Times interest earned 16

Step by Step Answer:

Before recommending one stock over the other I would do an analysis of the provided financial ratios of the two companies Return on Equity ROE Net Inc...View the full answer

Accounting

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