Why wouldnt investors invest all their money in

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Why wouldn’t investors invest all their money in software companies instead of in less profitable companies? (Focus on risk and return.)
Points earned: /2 ey sell. Companys in the service d quick ratio would be different ill be lower s.
2012 2013 2014 2015 Current ratio 1.883333333 1.738095238 1.785714286 1.551724138 Quick ratio 1.216666667 1 1.238095238 1.137931034 Item Total current asets 16,950 21,900 22,500 27,000 Total current liabilities 9,000 12,600 12,600 17,400 inventory 6,000 6,900 6,900 7,200 Current Asset - Inventory 10,950 15,000 15,600 19,800 A. B. C. The current ratio decreased from 2012 to 2015 decreased in 2013 and increased in 2014 and then The firms liquidity over the period of 2012 was alright but in 2013 it was better. I believe that it supports with part B, because they averages to Bauman company's inventory.
Points earned: /2 5. The quick ratio n decreased in 2015. are good .
A. B and C. D. Bluegrass has a low inventory turnove and a low quick ratio. This migh be due to slow sales, production and or maybe their inventory or product is out of date. The average collection for bluegrass is 73 days which is higher than the industrys of 52 days, also the nuber of days for the average payment is 31 compareed to 40 days. I would try and get from 73 days to aound 50 days. I do feel that they payment of 31 days is good. Bluegrass need to do there collection period closer to the averge of 50 days more so than the 73 days that it was doing already. I do believe that there payments are doing okay so that is good.
Points earned: /2
Ratio Definition Calculation Debt Fixed Payment Coverage + {[(principal + preferred stock $3,000,000 + $200,000 $3,200,000 $1,000,000 + $200,000 + (($800,000 +$100,000))* (1/(1-0.4))) $2,700,000 EBIT $3,000,000 Interest $1,000,000 36,500,000 / 50,000,000 Times Interest Earned $3,000,000/ $1,000,000 Dividends)] ´ [1 ¸ (1 – t)]} Debt Total assets EBIT Interest EBIT   Lease payment Interest   Lease payments
Creek Industry Points earned: /2 0.73 0.51 3 7.3 1.185185185 1.85 Total debt 36,500,000 Total assets 50,000,000
a. (1) Debt ratio = total liabilities/total assets Pelican $1,000,000 10,000,000 0.1 10% Timberland $5,000,000 $10,000,000 0.5 50% (2) Times interest earned = earnings before interest and taxes/interest T.I.E $6,250,000 $100,000 62.5 T.I.E $6,500,000 $500,000 13 b. (1) Operating profit margin = operating profit/sales Pelican $6,250,000 $25,000,000 0.25 25% Timberland $6,250,000 $25,000,000 0.25 25% (2)

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