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You are a financial analyst working for ProVest Bank. Your client, Amy, just receive an inheritance a month ago, and she is now considering to

You are a financial analyst working for ProVest Bank.

Your client, Amy, just receive an inheritance a month ago, and she is now

considering to invest in one of the two companies she found promising. She has

exactly $10,000 to invest in shares, no more no less.

Company 1 - Company 1 is a multibillion- dollar Australian retailer that sells electronics, as well

as major and small appliances. The business has 315 stores in Australia and New Zealand and

growing. With the current climate that encourages people to work from home and stay at home,

the business is reaping benefits from selling home electronics for work and entertainment.

Share price as of 30 June 2020 was $42.69, and now it is sitting between $51.09 and $53.96.

Company 2 - Company 2 is a multimillion-dollar Australian manufacturer in food industry. It is

one of the significant players in the Australian plant-based beverage market. The company does

export organic plant-based range to other countries, as organic food has becoming more and

more in demand.

Share price as of 30 June 2020 was $19.83, and now it is sitting between $7.49 and $9.96.

Amy would like your assistance if Company 1 or Company 2 is better. She was debating whether

to invest in Company 2 as the share price is lower and she can get more shares, or to invest in

Company 1 as they are multibillion-dollar companies which are performing very well these days.

Your client is after your financial advice as to which company is worth investing.

Your group will need to provide ratio analysis for the two companies and let her

know which company is performing better.

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