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You are choosing between two investments, Flexon Industries and Tektron, Inc. Flexon Industries is a steady performer, perpetually growing earnings between 5 % and 8

You are choosing between two investments, Flexon Industries and Tektron, Inc. Flexon Industries is a steady performer, perpetually growing earnings between 5% and 8% per year and projecting the same rate of growth for the next year. Tektron, Inc. is lately a top performer, growing earnings from 10% to 12% per year over the past three years and projecting the same rate of growth for the next year. However, the SEC is investigating Tektron, Inc. for potential questionable accounting practices for the past three years. As a potential investor, what would you do?
Invest in Flexon Industries.
Invest now in both companies, but invest more in Flexon Industries.
Invest in Tektron, Inc.
Wait for the SEC investigation to be completed before investing in either company.
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