The selected ratios of the two companies are given below

Capital market investors will be always looking for all those companies who are trying to maximize their profits and rate of return for the investors and they are highly growing companies and they are always having a higher solvency and liquidity ratios and in this case, we can see that these investors are favouring Microsoft.

Microsoft has better current ratio and it has better total debt ratio along with times interest ratio along with price to earning ratio which is reflective of the situation that this company is having a better liquidity along with better solvency and it also has higher interest coverage and it also had higher market ratio so the market is always preferring this company as it considers it to be highly safe and liquid.

Schweppes have a relatively lower performance ratios but the overall asset turnover ratio has been higher but it does not find the favour from the capital market investor as it can be seen that this company does not have enough operational profitability and solvency on its hands.

Capital market investors are hence, preferring to invest into Microsoft.