Assume that you are considering purchasing stock as an


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Nov 19, 2014. Assume that you are considering purchasing stock as an investment. You have narrowed the choice to Topline.com and E-shop Express and have assembled the following data. Requirements: 1. Compute the following ratios for both companies for the current year and decide which company’s stock better fits your investment strategy. a. Quick (acid-test) ratio. b. Inventory turnover. c. Day’s sales in average receivables. d. Debt ratio. e. Times-interest earned ratio. f. Return on common stockholder’s equity. g. Earnings per share of common stock. h. Price/earnings ratio. 2. Compute each company’s economic-value-added (EVA) measure and determine whether the companies’ EVA’s confirm or alter your investment decision. Each company’s cost of capital is 10%. ATTACHMENT PREVIEW Download attachment Table one.pdf tomahawk1959
posted a question ยท Nov 19, 2014 at 10:19am

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