You have a client who has the opportunity to invest $30000 in one of the two companies from a single industry The only information he has given you on these companies is shown below According to your client the word HIGH refers to the top third of the industry Average is the middle and third LOW is the bottom third Required your client would like you to advise him on which company to invest in Write a brief memo to your client justifying your recommendation Particulars Company 1 Company 2 Earnings Per Share Low High Return on Total Assets Low High Debt to Equity Ratio Average High Current Ratio Low Average Price Earnings High Low Dividend Yield Ratio Average High

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Posted on Oct 02, 2024

You have a client who has the opportunity to invest $30000/- in one of the two companies from a single industry. The only information he

You have a client who has the opportunity to invest $30000/- in one of the two companies from a single industry. The only information he has given you on these companies is shown below. According to your client the word HIGH refers to the top third of the industry; Average is the middle and third; LOW is the bottom third.

Required: your client would like you to advise him on which company to invest in. Write a brief memo to your client justifying your recommendation.

Particulars	Company 1	Company 2
Earnings Per Share	Low	High
Return on Total Assets	Low	High
Debt to Equity Ratio	Average	High
Current Ratio	Low	Average
Price/Earnings	High	Low
Dividend Yield Ratio	Average	High