Select two companies and perform an in-depth financial statement analysis using annual data for the past 10 years. One must be a blue chip company listed in the down Jones index.

Your discussion and analysis of each company should include: company background industry outlook analysts’ forecasts revenue, price, and income trend analysis financial ratio analysis (use the ratio analysis table; note that you will need to complete two charts, one for each company) Altman’s z-score calculation for at least three years discussion of any ethical concerns about this and explanation of what could be done to improve or promote ethical behavior.

Compute beta of each stock using regression analysis. Compute each stock’s required rate of return using the capital asset pricing model (CAPM) and beta from above. Compute the intrinsic stock price using the Gordon growth model and the required rate of return. Discuss whether the stocks are undervalued or overpriced. Discuss the models used and their limitations, if any. What are analysts’ opinions of the firm’s stock value? Discuss the discrepancies between the computed and actual stock prices.