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

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

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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