Using Common Size Data for Investment Analysis}

Assume that you are a trust officer for Bay Street Bank. You are attempting to select a pharmaceutical manufacturer's shares for a client's portfolio. You have secured the following data:

\section*{Required:}
CONCEPTUAL CONNECTION Comment on the relative performance of these firms.
\section*{OBJECTIVE}
\section*{Problem

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Five-Year Averages Industry Average Morrison Rivera O'Malley Theba Sales growth 9.3% 8.8% 10.2% 10.0% 7.9% Net income growth 6.0 15.3 1.9 1.4 1.6 Asset growth 7.0 6.6 8.3 8.9 6.3 Current Year Industry Average Morrison Rivera O'Malley Theba Return on equity 19.5% 18.4% 22.7% 20.8% 17.3% Return on assets 11.7 10.4 13.7 12.8 11.1 Dividend payout 31.0 30.0 39.0 37.0 29.0