Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management d
1 answer:
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Answer:
A) Profit Margin, Barco = 23.8%, Kyan = 22.1%
B) Asset Turnover, Barco = 1.83, Kyan = 1.84
C) ROA, Barco = 44%, Kyan = 41%
D) ROE, Barco = 66%, Kyan = 61%
E) Price-Earnings Ratio, Barco = 17.12 times, Kyan = 16.67 times
F) Dividend yield, Barco = 5.1%, Kyan = 5.2%
2B) Barco is the good investment.
Explanation:
Requirement A to Requirement F - See Images Below
2B) Barco company's share is the best from the two companies. From the Return on Asset, Return on Equity, and Price-earnings ratio, it is clear that Barco company's share is an upper hand. For example, P/E ratio of Barco is 17.12 times while Kyan's P/E ratio is 16.67 times. Therefore, I would recommend Barco company's stock should be the better investment.
