4E Financial Statements Analysis Q1(c) by

Groupings

kelly_tan_shi_hui2 — 2024-04-19 00:06:27 UTC

Discuss

kelly_tan_shi_hui2 — 2024-04-19 00:06:51 UTC

Which business should Michael invest in? Support your answer with reasons.

Bryan,abhishek,Alvin,Xavier,Keeyun

2024-04-19 00:33:41 UTC

Michael should invest in fast bots Pte Ltd as they have a higher return on equity of 16.93 as compared to posh cars Pte Ltd. Since fast bots Pte Ltd has a higher profit of the year compared to Posh Cars Pte Ltd, so Fast bots Pte Ltd is doing better than Posh Cars Pte Ltd which results in more dividends being paid back to Michael.

Hnin, shuwe, aleeya, sarafina

2024-04-19 00:36:11 UTC

Micheal should invest in fast bots because the business’s return on equity is higher than posh cars’ by 16.93%. Since they have a higher return on equity the business will e more efficient in generating profits.

Posh Cars Pte Ltd

kaelynn_yew2 — 2024-04-19 00:36:48 UTC

Profit and gross profit margin is higher than Fast Bots Pte Ltd, so it is more profitable.
Posh Cars Pte Ltd will be able to develop the business more than Fast Bots Pte Ltd, so Micheal will be able to receive more returns of investments.

Anson, Kai Zhe, Tanim, Javier, Jing Yi

jingyizsk777 — 2024-04-19 00:40:48 UTC

Michael should invest in Posh Cars.
Since the business is doing well, evident from the gross profit margin and profit margin, which is higher than Fast Bots by 5.98% and 7.48% respectively. Thus the business is able hand out a higher rate of dividends compared to Fast bots, allowing Michael to earn a bigger profit.
Since the business is doing well and is stable, Michael can invest if he lets the profit accumulate before collecting it. Therefore, Michael is more likely to earn a profit

Khairy Zhenkai kai xuan Gloria

2024-04-19 00:40:56 UTC

Michael should choose to invest in Posh Cars Pte Ltd.
Posh Cars has a gross profit margin that is 5.98% more than Fast bots. This shows that posh cars are more profitable than fast bots as they may have been able to purchase items from a supplier at a cheaper price without compromising quality. Thus it ensures that the quality of goods are of a high standard which would allow more sales. Hence the rate of dividends for Michael would be higher.
Posh cars has a profit margin that is 7.48% more than fast bots. This shows that Posh cars may have been able to sublet their excess space to another business to earn rental income. Thus increasing their profit margin

Putera, Jeff, Sarah, Christina

putera_amirza_danial_mohamed1 — 2024-04-19 00:41:37 UTC

Michael should invest in Posh Cars.

1. Posh Cars has a 7.48% higher profit margin than Fast Bots, this is beneficial for Michael as an investor as a business which is more profitable and may then be able to pay out higher dividends rate.

2. Posh Cars has a 5.98% higher gross profit margin than Posh Cars. This is beneficial to Michael as an investor as the business is more stable to invest in since

adrea, dhaya, vero, iman and zi jie

2024-04-19 00:42:01 UTC

Micheal should invest in fast bots as fast bots has a higher return on equity of 16.93%. By investing in fast bots, Micheal would have a higher chance in earning more dividends in a efficient manner when the business, Fast Bots earns more profits.Benefitting Micheal who is a shareholder.

Alif,Skylar,miridhu,seraphina

2024-04-19 00:45:58 UTC

Michael should invest in fast bots. Fast bots has a higher return on equity of 16.93%. This means when u invest more u earn more