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Take the role of an investment analyst at Merrimack Lowell. It is your job to recommend investments

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Take the role of an investment analyst at Merrimack Lowell. 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 graphics software industry.

Take the role of an investment analyst at Merrimack Lowell.

Write a report to the Merrimack Lowell investment committee. Recommend one company€™s stock over the other. State the reasons for yourrecommendation.

Transcribed Image Text:

Graphit.net Data Doctors 44 Ratio Days' sales in receivables Inventory turnover Gross profit percentage Net income as a percent of sales Times interest earned Return on equity Return on assets 50 10 60% 14% 69% 13% 17 36% 15% 28% 20%

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TO Merrimack Lowell Investment Committee FROM Student Name SUBJECT Investment Recommendation I recom...View the full answer


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Rustia Melrod
I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it. The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
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Related Book For  book-img-for-question
Financial accounting

Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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Related Video

Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.

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