Risk Analysis & Returns-TWO part assignment

workingman
  • MUST BE UNDER 10% SIMILARITY score
  • MUST MEET deadline
  • I am looking for a completed paper on time with low similarity score, not a refunded downpayment becuase the paper is unfinished or has been plagiaized.  
  • Please read instructions of assigment before agreeing to do it
  • 2 part assigment 
    • 1 excel doc. with caculations and displaying work 
    • 3 page summary (word doc.) wich is better investment based on findings.

 

The next step for Dr. Bueller is to help him compare stocks and make good investment decisions. With that in mind, you want to compare Industrial Company #1 with its top rival Industrial Company #2 and explain to Dr. Bueller which one would make a better investment.

Part 1

In preparation for sharing your thoughts with Dr. Buellerr, please do the following  calculations on an excell spread sheet for the following for both companys all work must be shown.

  • Operating income margin 
  • Net income margin 
  • Current ratio 
  • Earnings per share 
  • Price-to-earnings (P/E) ratio. 

 

Industrial Company #1

(in millions)

2008

2009

2010

Sales

$4,250

$4,500

$4,750

Operating Income

$400

$445

$480

Net Income

$200

$225

$250

 

 

 

 

Current Assets

$2,500

$2,750

$2,850

Current Liabilities

$2,300

$2,450

$2,500

 

 

 

 

Shares Outstanding

100

100

100

Average Stock Price

$32

$39

$50

 

 

 

Industrial Company #2

(in millions)

2008

2009

2010

Sales

$3,350

$3,750

$4,250

Operating Income

$335

$395

$470

Net Income

$168

$198

$240

 

 

 

 

Current Assets

$1,750

$1,900

$2,100

Current Liabilities

$1,350

$1,400

$1,500

 

 

 

 

Shares Outstanding

80

80

80

Av Stock Price

$38

$46

$62

 

 

 

 

2010 Industry Avg.

Operating Margin

10.50%

Net Margin

5.50%

Current Ratio

1.25

Earnings/Share

$2.75

PE Ratio

20.0

 

 

part 2 


    • . Then complete a 3 page paper (body of paper), in a Word document, about which company is a better investmennt company 1 or company 2 based on your findings.
    • 11 years ago
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    Answer(1)

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    • workings.xlsx
    • interpretation.docx