Which stock should judy buy

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Question - Judy Snow is considering investing $20,000 and wishes to know which of the two companies offers the better alternative. Hoffman Company earned net income of $126,000 last year on average total assets of $560,000 and average equity of $420,000. The company's shares are selling for $100 per share; 12,600 shares of common stock are outstanding. McMahon Company earned $48,750 last year on average total assets of $250,000 and average equity of $200,000. The company's common shares are selling for $78 per share; 5,000 shares are outstanding. Which stock should Judy buy?

Reference no: EM133146679

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