Question: Based on the key indicators tabulated in the table below and the readings and resources provided for this unit, analyze Firm A and Firm B

Based on the key indicators tabulated in the table below and the readings and resources provided for this unit, analyze Firm A and Firm B thoroughly. Which firm in your opinion is more attractive, and why?

Firm A

Firm B

P/E ratio

3

3

EPS growth rate

+10

-20

Debt-to-equity ratio

0.30

0.70

Sales ($ million)

100

100

Cash on balance sheet ( $

million)

20

2

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