Essay
The following information for 2014 is provided for two public companies in the same industry: 
Instructions
Answer the following questions about the two companies. Use the information provided to calculate the ratios needed to support your answers.
a. Based on the above information, which company is more profitable?
b. About which company are investors more optimistic?
c. In which company would investors prefer to buy shares for growth potential? In which company would they prefer to buy shares if their goal is dividend income?
Correct Answer:
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a. Fauna's profit margin is 9.7% ($970 ÷...View Answer
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