You are considering investing in one of two companies in the same industry; Hanzel Inc. and Gretel Inc. You have calculated the debt/equity ratios and profitability ratios for each and they are very similar. You did notice that Hanzel Inc. has a defined contribution pension plan for its employees while Gretel Inc. has a defined benefit plan. Your friend suggests that you look in the notes before making your investment decision.
Instructions
What information should you be looking for in the notes related to the assets and pension plans and how will it influence your decision?

Question

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The Answer of You are considering investing in one of two companies in the same industry; Hanzel Inc. and Gretel Inc. You have calculated the debt/equity ratios and profitability ratios for each and they are very similar. You did notice that Hanzel Inc. has a defined contribution pension plan for its employees while Gretel Inc. has a defined benefit plan. Your friend suggests that you look in the notes before making your investment decision.
Instructions
What information should you be looking for in the notes related to the assets and pension plans and how will it influence your decision?

You Are Considering Investing in One of Two Companies in the Same