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The following ratios are available for Bachus Inc. and Newton Inc.


Current

Ratio

Debt to

Assets Ratio

Earnings

per Share


Bachus Inc.

2:01

75%

$3.50

Newton Inc.

1.5:1

40%

$2.75

Compared to Newton Inc., Bachus Inc. has:

(a) higher liquidity, higher solvency, and higher profitability.

(b) lower liquidity, higher solvency, and higherprofitability.

(c) higher liquidity, lower solvency, and higher profitability.

(d) higher liquidity and lower solvency, but profitability cannot be compared based on information provided.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9949893
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