Take the role of an investment analyst. It is your job to recommend investments for your client.
Question:
Take the role of an investment analyst. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the data analytics industry:
Recommend one company’s stock over the other. State the reasons for your recommendation.
Transcribed Image Text:
Abbott Co. Stellar Corporation 41 Ratio Days' sales in receivables.. Inventory turnover. Gross profit percentage Net income as a percent of sales. Times interest earned . Return on equity.. 48 11 58% 67% 13% 12% . 13 19 30% 35% Return on assets 19% 14%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
TO Investment Committee FROM Student Name SUBJECT Investment Recommendation I recommend that we inve...View the full answer
Answered By
Hardik Soni
I am teaching from more than 3 years .
I am teaching from class 1st to 12th (commerce + Maths)
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Question Posted:
Students also viewed these Business questions
-
Prepare a horizontal analysis of the comparative income statements of Norman Music Co. Round percentage changes to the nearest one-tenth percent (three decimal places). A1 Norman Music Co....
-
Prepare a horizontal analysis of the comparative income statements of Monroe Music Co. Round percentage changes to the nearest one-tenth percent (three decimal places). A1 Monroe Music Co....
-
A public companys annual report filed with the SEC includes a. A description of the business. b. Financial statements. c. Managements explanations for trends in sales. d. All of the above are...
-
In 2014, Elbert Corporation had net cash provided by operating activities of $531,000; net cash used by investing activities of $963,000; and net cash provided by financing activities of $585,000. At...
-
Use vector methods to prove that a triangle that is inscribed in a circle so that it has a diameter for a side must be a right triangle. Figure Ex-31
-
Showtime Company?s ending inventory at December 31, 2020, includes the following items: Calculate LCNRV for the inventory: a. As a whole (assuming the items are similar), and b. Applied separately to...
-
What do you think Major League Baseball needs to do to evaluate if the pitch clock is effective over the next five years?
-
Hushpuppy Company purchased merchandise on account from a supplier for $6,750, terms 2/10, n/30. Hushpuppy Company returned $1,500 of the merchandise and received full credit. a. If Hushpuppy Company...
-
Ann would like to buy a house. It costs $2,500,000. Her down payment will be $50,000. She will take out a mortgage for the remainder. It will be a 30 year, fully amortizing, FRM, with constant...
-
Restaurants have traditionally used bottom-end wines to sell by the glass (BTG) at reasonably low prices per glass. In recent years, there has been a growing trend within the restaurant industry to...
-
A skeleton of Gunner Corporations balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Gunners balance sheet: a. The debt ratio was 0.56. b. The current...
-
Calculate trend percentages for Blueberry Valley Sales & Services total revenue and net income for the following five-year period, using year 0 as the base year. Round to the nearest full percent....
-
In your opinion, are external forces or internal forces more important in shaping a companys corporate governance system? Discuss.
-
Accounting Rate of Return WeCare Clinic is planning on investing in some new echocardiogram equipment that will require an initial outlay of $175,000. The system has an expected life of five years...
-
What is free cash flow for Cyberdyne in Year 1? Please round to the nearest dollar. Cyberdyne Systems Inc Selected Financial Information ($000's) EBITDA Depreciation Tax Rate, T Current Assets...
-
You are recently hired by a hedge fund named SSG Investments. You decide to use 100 futures contracts to hedge an exposure to the price of copper. Each future contract is on 7,000 pounds of copper....
-
You are provided with the cash flow projection of Project A and Project B in Table A. Table A: Cash flow projection of Project A & B 0 -1,000,000 -1,000,00 1 400,000 200,000 2 350,000 200,000 3...
-
Given the information in Table A, complete the required forecast items. Table A: Pro Forma Income Statement Unit: THB Million 2020 2021 Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses...
-
Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in...
-
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
-
Identify whether each of the following would be reported as an operating, investing, of financing activity in the statement of cash flows. a. Retirement of bonds payable b. Payment of accounts...
-
Identify whether each of the following would be reported as an operating, investing, or financing activity in the statement of cash flows. a. Issuance of bonds payable b. Cash sales c. Collection of...
-
Martin corporations accumulated depreciation-furniture increased by $10,500, while $3,850 of patents were amortized between balance sheet dates. There were no purchases or sales of depreciable or...
-
Answer each part by using well-labelled graphs for the IS-LM, WS-PS and AS-AD models: a) Assume that Australian government has made it very difficult for refugees (who are prepared to work at lower...
-
for OPEC to act in line with the "multiplant monopoly - joint profit maximizing ideal" what are the basic changes OPEC needs to make and the factors that prevent it?
-
Fiscal policy deals with the government's spending and taxation practices. The changes in fiscal policy affect households and firms (companies) in the economy. Monetary Policy refers to the actions...
Study smarter with the SolutionInn App