Question: Selected ratios for the current year for three companies in the office furniture industry follow: Ratio Youkea The Trick Peon's Average Collection Period 30 days
Selected ratios for the current year for three companies in the office furniture industry follow:
Ratio Youkea The Trick Peon's Average Collection Period 30 days 50 days 35 days Days in Inventory 40 days 75 days 50 days Times Interest Earned 25 times 30 times 45 times Debt to Assets 62% 53% 75% Return on Common Shareholders' Equity 26.8% 30.2% 38.0% Based on the above ratios which company has used leverage to increase its return to investors?
Question 17 options:
a) Youkea
b) The Trick
c) None of the above.
d) Peon's
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