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Laura has recently inherited 50 000 and has been investigating the possibility of buying shares as an investment. She is, initially, looking to maximise her

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Laura has recently inherited 50 000 and has been investigating the possibility of buying shares as an investment. She is, initially, looking to maximise her income. She has researched two companies and has provided the following information based on the latest financial statements for the year ended 30 April 2016. Current market price Share price high-low last 52 weeks Dividend per share Dividend yield Dividend cover Earnings per share Price earnings ratio ROCE Gearing Stabilo plc 2.40 High-Low 2.50 - 2.35 9.6p 4% 4 times 25p 9.6 6.8% 40% Gogro plc 1.40 High-Low 1.45 - 0.60 10.5p 7.5% 0.8 times 10p 14 10.4% 125% this shows the highest and lowest price that the shares were bought and sold in the previous 52 weeks. Statement of financial position extracts for property plant and equipment. Cost m 250 45 Depreciation to date m 50 30 Stabilo plc Gogro plc NBV m 200 15 1 Evaluate both businesses from an investor's point of view and advise Laura which company would be best for her to buy shares in. [25 marks]

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