Garner Inc. and Tanex Corp. are competitors in the equipment manufacturing industry. Garner has a P/S ratio of 3.2, whereas Tanex has a P/S ratio of 1.8. Which of the following best justifies the difference in P/S ratios between the two firms? Relative to Garner, Tanex has a:
A) higher total asset turnover.
B) lower beta.
C) lower net profit margin.
D) lower total asset turnover.
Correct Answer:
Verified
Q46: The P/E ratio can be expected to
Q47: An investor applying a growth at a
Q48: Some companies, tend to provide low guidance,
Q49: Firm ABC and Firm XYZ both have
Q50: Firm ABC and Firm XYZ both have
Q52: Since extraordinary items affecting earnings are typically
Q53: Which of the following would increase a
Q54: In future periods, YZX Inc. is expected
Q55: The auditor's report guarantees the accuracy of
Q56: To estimate the intrinsic value of a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents