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You have the opportunity to invest $10,000 in one of two companies from a single...

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Question

Finance

You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom third.

Ratio Company A Company B
EPS High High
Return on equity High Average
Debt-to- assets High Low
Current Low Average
Price/earnings Low High

Discussion Question:

Which company would you select? Write a brief explanation for your recommendation.

Answer & Explanation Solved by verified expert
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