Problem

Caren Company and Revlon Company are similar firms that operate in the same industry. Re...

Caren Company and Revlon Company are similar firms that operate in the same industry. Revlon began operations in 2009 and Caren in 2006. In 2011, both companies pay 7% interest on their debt to creditors. The following additional information is available.

Write a half-page report comparing Caren and Revlon using the available information. Your analysisshould include their ability to use assets efficiently to produce profits. Also comment on their success inemploying financial leverage in 2011.

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