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critical thinking exercise 15 Comparing Industry Ratios (Basic) You are interested in investing in a regional hotel company aJUST NEED 5,6,7,8 please and are first 4 questions right

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Answer #1
Sr No Particulars Hotel N Hotel J Hotel C Hotel W
5 Net income 596000 198000 74345 -545198
Total equity 4081000 2239000 194053 693809
ROE 14.60% 8.84% 38.31% -78.58%
6 Total liabilites 4587000 5944000 456441 3089318
Total equity 4081000 2239000 194053 693809
D/E ratio 1.12 2.65 2.35 4.45
7 Net income 596000 198000 74345 -545198
No. shares 225800 389000 32312 168238
BEPS 2.64 0.51 2.30 -3.24
8 While investing, companies with higher current ratio should be preferred
Hotel N and Hotel C have high current ratios
However Hotel C has highest ROE= 38.31%
Hotel C must be selected
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