The following table shows data for C Inc Current Year Next Year Forecast Total Assets 200,000 220,000 Equity Multiplier 1 8 1 8 Revenues 300,000 330,000 Net Profit 24,000 33,000 Forecasts for a competitor company X Inc expect it to achieve asset turnover of 1 5x, equity multiplier of 1 5x, and profit margin of 12 0 Just based on ROE expectations, which company would be preferred by investors and why

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Question: The following table shows data for C Inc. Current Year Next Year Forecast Total Assets 200,000 220,000 Equity Multiplier 1.8 1.8 Revenues 300,000 330,000 Net

The following table shows data for C Inc.

	Current Year	Next Year Forecast
Total Assets	200,000	220,000
Equity Multiplier	1.8	1.8
Revenues	300,000	330,000
Net Profit	24,000	33,000

Forecasts for a competitor company X Inc. expect it to achieve asset turnover of 1.5x, equity multiplier of 1.5x, and profit margin of 12.0%. Just based on ROE expectations, which company would be preferred by investors and why?

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