Which company stock is the most attractive and why

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Reference no: EM13263279

You started work with an investment bank and your first task was to invest in one of the two shortlisted companies listed. Your assistant has compiled the following data on two companies:

	Company A	Company B
Return on assets	10.9%	9.0%
Return on equity	15.4%	14.3%
Dividend payout ratio	0.35	0.3
Required return on equity	13.0%	12.4%
Weighted average cost of capital	11.8%	11.7%

In your opinion, which company stock is the most attractive and why? (Please show your calculations)

Reference no: EM13263279

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