(Answered) Problem - below are ratios for two companies which operate

Accounting

Problem - Below are ratios for two companies which operate in the same industry.

	Company A	Company B
P/E	27.8	63.0
Gross profit margin	59.1	66.2
Profit Margin	8.6	13.1
Quick	.8	0.5
Current	1.2	0.65
Debt-to-equity	.45	0.78
Return on equity	29.0	26.9
Return on assets	16.8	28.2
Dividend yield	1.7	1.2
Dividend payout	44.0	67.0

Required: Evaluate the companies as a potential investment based on the given ratios.

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