Risk Analysis & Returns-TWO part assignment
- 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 |
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|
|
|
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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