Two independent companies have the same annual earnings ($100,000); however, the companies have different amounts of shareholders'

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Two independent companies have the same annual earnings ($100,000); however, the companies have different amounts of shareholders' equity. Average shareholders' equity for company 1 is $300,000 and for company 2 is $350,000. Which company would you consider a better investment and why?
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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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