For smart zena investment group
I will need the excel spread sheet please.
As we discussed
thanks
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.
In preparation for sharing your thoughts with Dr. Bueller, go to the Small Group Discussion Board and divide the following calculations evenly among group members. Each group member will be responsible for submitting his or her assigned calculations.
- 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 |
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Current Assets | $2,500 | $2,750 | $2,850 |
Current Liabilities | $2,300 | $2,450 | $2,500 |
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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 |
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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 |
Group Project Guidelines:
- As a group, perform the calculations of the following values for both Industrial Company #1 and Industrial Company #2 using the information from the data tables located in the Assignment Description:
- Operating income margin
- Net income margin
- Current ratio
- Earnings per share
- Price-to-earnings (P/E) ratio.
- Calculations must be divided evenly among group members.
- Each group member must organize their calculations in an Excel spreadsheet and submit it to the Small Group Discussion Board at least 48 hoursbefore the Group Project due date.
- Respond to each group member's Small Group Discussion Board topic and
- Compare his or her calculations for both Industrial Company #1 and Industrial Company #2.
- Compare the company calculation values to the industry averages.
- In your own words, explain the significance of each calculation.
- Each group member will then write 3–4 pages (body of paper), in a Word document, about which company is a better investment.
- Post a new topic to the Small Group Discussion Board that contains your Word document.
11 years ago
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- assignment___fin.docx
- assignment__fin.xlsx
