Use the following information for the question(s)that follow.
Company X and Company Y are in the same industry and have the following ratios.
-Based on the information above, we can conclude that
A)company Y is more financially conservative than company X.
B)company Y is more liquid than company X.
C)company Y is reinvesting a higher percentage of its earnings in the business than company X.
D)company Y is using assets less efficiently than company X.

Question

Use the following information for the question(s)that follow.
Company X and Company Y are in the same industry and have the following ratios. 
-Based on the information above, we can conclude that
A)company Y is more financially conservative than company X. 
B)company Y is more liquid than company X. 
C)company Y is reinvesting a higher percentage of its earnings in the business than company X. 
D)company Y is using assets less efficiently than company X.

Quizplus · Accepted Answer

The conclusion that company Y is reinvesting a higher percentage of its earnings in the business than company X can be drawn if the information provided indicates that company Y has a higher reinvestment rate or lower dividend payout ratio compared to company X.

Use the Following Information for the Question(s)that Follow