1.Pick two competing public companies (YOU CAN NOT PICK APPLE, AMAZON OR GOOGLE)
1.Provide a brief description of each company (approx. 1 page)
2.Highlight the following ratios (•CURRENT RATIO, OPERATING PROFIT MARGIN, RETURN ON EQUITY & PE RATIO)
3.Write a brief paragraph on each ratio – what is the definition, which company’s is better and why
4.What is the Weighted Average Capital Costs (WACC), what is the Return on Invested Capital (ROIC) – provide a brief description on which company’s is better and why.
5.Analyze the earnings of each company for the last 3 years – are the growing? What is driving the earnings, be specific
6.Provide a brief summary on which company’s stock you would rather buy and why…also provide an innovative suggestion on how the company you are recommending can increase earning (new product, acquisition, enter a new market, etc.)
•Format:
•Should be 4-5 pages
•Use Headers: Company Background, Ratios, WACC, Earnings, Recommendation
•Make sure you source your material – use APA format
•11 point font, single spaced, include name and course number
•Grades will be based on content, format and grammar