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Use the following information to answer the next question. JJ Inc. has (net income / sales )= .20, (sales / assets)= 1, and (assets /

Use the following information to answer the next question.

JJ Inc. has (net income / sales )= .20, (sales / assets)= 1, and (assets / equity)= 1.5

CC Inc. has (net income / sales )= .11, (sales / assets)= 2.3, and (assets / equity)= 1.5

SS Inc. has (net income / sales )= .20, (sales / assets)= 2, and (assets / equity)= 1

RC Inc. has (net income / sales )= .05, (sales / assets)= 1, and (assets / equity)= 8

5) If you were an individual investor, which company would you invest in?

A. JJ INC.

B. CC INC.

C. SS INC

D. RC INC

E. you are indifferent between SS INC. and RC INC.

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