40) Company A and Company B are in the same industry and have the following ratios. a b current ratio:1.2 .89 debt/equity: .20.40 total asset turnover: 1.92.1 Return on Equity: 12.4% 14.8% Dividend...

40) Company A and Company B are in the same industry and have the following ratios.

a b

current ratio:1.2 .89

debt/equity: .20.40

total asset turnover: 1.92.1

Return on Equity: 12.4% 14.8%

Dividend Payout ratio: 25% 10%

Discuss the relative natures of the two companies in terms of risk and return. Identify the more growth-oriented firm and justify your selection. Support your discussion and conclusions by referring to the ratios.