a. Advise the investor as to why or why not to invest in each of the companies using the following three investment ratios to assist your recommendation. Earnings per share Price Earnings ratio Gearing ratio                               Show all formula and workings

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...
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a. Advise the investor as to why or why not to invest in each of the companies using the following three investment ratios to assist your recommendation.

    1. Earnings per share
    2. Price Earnings ratio
    3. Gearing ratio                               Show all formula and workings          
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Explain two (2) challenges when analyzing and interpreting the financial performance of different entities over a specified period of time.

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