Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Go to the Yahoo! Finance Web site.

Review the overview/main pages for the four public companies:

3M
Alcoa
Coca-Cola
Abbott Labs

Research the the four firms using either Key Statistics or Financials from the overview/main pages for the stocks onYahoo! Finance Web site. Compute and compare the following financial ratios for the four firms for their most recent fiscal years:

Current Ratio (X)
Sales/Total Assets (percent) or Total asset turnover
Times interest earned (X)
Total Debt/Equity (percent)
Net Income / Net Sales (percent) or Return on Sales (ROS)
Net Income / Total Assets (percent) or Return on Assets (ROA)
Net Income / Common Equity (percent) or Return on Equity (ROE)
P/E or P/E Ratio (X)
Market to Book Value Ratio (X)

Note: In Key Statistics under the heading 'Valuation Measures� there are numbers for both Trailing P/E ratios and Forward P/E ratios. Most commonly, in calculating both ratios the corporation's current stock price is divided by its earnings per share (EPS). The difference is that Trailing P/E ratios use reported EPS for the past year, specifically the past/trailing 12 months (ttm), and Forward P/E ratios use estimated EPS for the upcoming 4 quarters. Also, in interpreting some of the other statistics provided, please note that 'yoy' is an acronym for 'year-on-year' and 'mrq' is an acronym for 'most recent quarter.'

prepare a paper responding to the following problems based on your research:

Compare the 9 financial ratios listed above for the four companies. It is recommended that you use a spreadsheet to demonstrate your comparison. Insert the table into your Word document and respond to the following problems:

How would you rank the four firms in terms of financial performance?
Why might their financial performances differ?
What economic or market factors might account for big differences in P/E ratios?
Select ONE of the companies and examine the trend in the ratios for the past three years. Respond to the following problem:
Is the firm's performance improving, declining, stable, or is something strange going on? (Please note that you should use these ratios and their trends to assist you in responding to the action items below.)

Continue your research on the company you selected in the previous action item.
At the Yahoo! Finance main page for your company select Competitors under the heading "Company." In the table entitled 'Direct Competitor Comparison' you'll see several key financial line items for the firm along with those for select competitors and the industry as a whole.

Scroll down to see individual competitors ranked by sales with links in the column entitled â??Symbolâ? to each of their own main pages.

prepare an analysis of the performance of the company you selected above. Your analysis is to include the information you gained from your research (above) and your responses to the following:

Who are the firm's competitors? Does the selection of competitors make sense to you?
How is your selected company performing against its competition? (Don't just say better or worse on particular ratios; try to think of and offer reasons why).

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M928974
  • Price:- $170

Guranteed 48 Hours Delivery, In Price:- $170

Have any Question? 


Related Questions in Basic Finance

1 what is a forward transaction what is a forward contract2

1. What is a forward transaction? What is a forward contract? 2. What is the spot price? What is the settlement date? 3. An opinion column in the Wall Street Journal observes: "Speculators earn a profit by absorbing risk ...

A columnist in the economist argues that the past ten years

A columnist in the Economist argues that: The past ten years have dealt a series of blows to efficient-market theory, the idea that asset prices accurately reflect all available information. In the late 1990s dot-com com ...

1 discuss some of the major issues to consider when

1. Discuss some of the major issues to consider when choosing between an active or passive exporting strategy. 2. You work for a small company that has an innovative low-cost production method for high-capacity jump driv ...

Apex corporation is considering the purchase of pinnacle

Apex Corporation is considering the purchase of Pinnacle Company in a stock-forstock exchange. Selected data on the two companies are shown in the following table: Apex Pinnacle Sales(millions) $750 $175 Earning after ta ...

1 how might land development activities be specialized why

1. How might land development activities be specialized? Why is this activity different from project development discussed in the preceding chapter? 2. What is an option contract? How is it used in land acquisition? What ...

An authorised deposit institution adi issued a 6 january

An Authorised Deposit Institution (ADI) issued a 6% January 2016 bond with a face value of $15 000 on 31 January 2012 at a yield of 7%. Assume that coupon payments are made every six months. The bond was sold on 31 Janua ...

Suppose that a bond has a yield to call ytc equal to 65

Suppose that a bond has a yield to call (YTC) equal to 6.5 percent and a yield to maturity (YTM) equal to 6.3 percent. Explain the meanings of these numbers to bond investors.

1 why do savers with small amounts to invest rarely make

1. Why do savers with small amounts to invest rarely make loans directly to individuals or firms? 2. What are transactions costs? What are information costs? 3. What are financial intermediaries? Why are financial interm ...

In a column in the new york times harvard economist edward

In a column in the New York Times, Harvard economist Edward Glaeser argues: "Theory and data both predict that the 1.2 percentage point drop in real interest rates that America experienced between 1996 and 2006 should ca ...

1 list four important drivers of housing demand and price

1. List four important drivers of housing demand and price appreciation. 2. What are public goods? How may they be reflected in house prices? 3. When considering an investment in "distressed'' properties, what are the tw ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen