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4. Your brother, who works in a bank, has recommended to you that you purchase shares in an organisation, on the basis of the following information, which he has heard discussed around the office:

Total assets have increased by 33%
Revenue has increased by 12%
Net profit has decreased by 4%.
The dividend per share is 23c.
The current share price is $8.50; 12 months ago it was $7.50.

Would you invest in this organisation? What information encourages you to do so, and what reasons might you have for hesitating? What additional information would you like before making this decision, and where might you find that information?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91220964

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