Final Answer:
Insufficient information. Without specific financial ratios and market context, it's impossible to determine the better investment between Baker plc and Grant plc. Brenda needs comprehensive financial data for an informed decision.
Thus option d is correct.
Explanation:
Comparing the investment potential of Baker plc and Grant plc requires a comprehensive analysis of various financial ratios and performance metrics. The advice provided to Brenda cannot be determined without access to specific financial indicators such as profitability ratios, liquidity ratios, leverage ratios, and others, along with historical trends and market context. Without these metrics, it's challenging to make an informed decision regarding the better investment opportunity between the two companies.
To evaluate the investment prospects accurately, one must consider ratios like Return on Investment (ROI), Debt-to-Equity ratio, Price-to-Earnings (P/E) ratio, and more. These metrics provide a comprehensive overview of a company's financial health and its potential for growth. Additionally, understanding market conditions, industry trends, and qualitative factors are crucial when making investment decisions. Without these details, it's premature to determine which company might be a better investment option.
Given the absence of specific financial ratios and market insights, it's not feasible to conclusively recommend either Baker plc or Grant plc as the superior investment. To make an informed decision, Brenda should acquire and analyze comprehensive financial data, assess industry conditions, and consider long-term growth prospects before finalizing an investment choice between the two companies.
Therefore option d is correct.