1. Choose two companies in the same industry that you are interested in. (a) Which industry are you interested in? (b) W

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1 Choose Two Companies In The Same Industry That You Are Interested In A Which Industry Are You Interested In B W 1 (90.5 KiB) Viewed 42 times

1. Choose two companies in the same industry that you are interested in. (a) Which industry are you interested in? (b) What are the companies that you chose? Provide ticker symbols of the companies. 2. Chapter 3. Financial Statements and Ratio Analysis (a) Find the most recent annual report (10-K that contains major financial statements) of each company. It is necessary to attach the annual reports to the assignment submission. (b) Choose any one ratio from each of the financial ratio categories (liquidity, debt, asset management, and profitability). So, the total number of ratios to be chosen is four. Then, for each company, calculate the ratios you selected and compare the ratios. What do the numbers mean? Which company do you think has better ratios? (c) Is your comparison in (b) a comparative analysis or a trend analysis? 3. Chapter 7. Stock Valuation (a) Find the most recent P/E ratio of each company from Google Finance or Yahoo Finance. Which company has a higher ratio? (b) How would you interpret the P/E ratio? 4. Chapter & Risk and Return (a) Find the beta of each company from Google Finance or Yahoo Finance. Which one has a higher beta? (b) What does the beta measure? (c) Based on the betas you found in (a), which company should have a higher expected return? 5. Suppose that you can invest in only one of the companies you have analyzed. Which one do you think is better? And, what is your reason for that choice? Useful Websites . Google Finance (https://www.google.com/finance) • Yahoo Finance (https://finance.yahoo.com) .SEC EDGAR (https://www.sec.gov/edgar/searchedgar/c ... earch.html) (You can find 10-K (annual) reports which contain financial statements.)