1. Please use these six companies in the previous "Financial Ratios" to list the stock prices of June 1 and July 1, 2020. Use the above info to compute stock return for an individual stock (1%, listing the computation).

2. Collect Beta coefficient for each stock and explain the risk (high, low or close to the average) (2%)

3. Conclude your portfolio investments in these six stocks and the risk and returns. (1%)

Formula Apple Amazon Netflix Coca-Cola Nike Under Armour 162819/105 718= 1.54 96334/8781 6178.504/6 20411/26973 16525/7866 2 = 1.10 855.696 = = 0.76 = 2.10 0.90 2702.209/1422 .009 = 1.90 Current Ratio Current Assets/ Current Liabilities Debt/Equity Ratio Debt / Equity 91807/9048 8 = 1.01 23414/6206 14759.26/7 27516/1898 0=0.38 582.157 = 1 = 1.45 1.95 3464/9040 = 0.38 592.687/2150. 087 = 0.28 Asset Turnover Total Sales / Total Assets 260174/338 516 = 0.77 280522/225 20156.447/ 37266/8638 248 = 1.25 33975.712 1 = 0.43 = 0.59 39117/23717 5267.132/4843 = 1.65 .531 = 1.09 Profit Margin Net Income/ 55256/2601 Net Sales 74 = 21.24% 11588/2805 1866.916/2 22 = 4.13% 0156.447 = 9.26% 8920/37266 = 23.94% 4029/39117 = 10.30% 92.139/5267.1 32 =1.75% 92.139/454 $0.20 2150.087/454 = $4.74 EPS Net Income / 55256/4380 11588/498 1866.916/4 8920/4820 = 4029/1240 = No. Shares $12.62 = $23.27 38.81 = $1.85 $3.25 Outstanding $4.25 Book value per Equity / No. 107147/438 62060/498 7582.157/4 18981/4280 9040/1240 = share Shares 0 = $24.46 = $124.62 38.81 = = $4.43 $7.29 Outstanding $17.28 Price to earning Share price / 273.36/12.6 1883.75/23. 369.03/4.25 53.49/1.85 = 89.38/3.25 = EPS 2 = 21.66 27 = 80.95 = 86.83 28.91 27.50 Market to book Share price / 273.36/21.6 883.75/124. 369.03/17.2 53.49/4.43 = 89.38/7.29 = Book value 7 = 12.61 62 = 15.12 8 = 21.36 12.07 12.26 12.48/0.2 = 2.63 12.48/4.74 = 2.63 per share $273.36 $1,883.75 $369.03 $53.49 $89.38 $12.48 Closing stock price EXPLANATIONS OF THE RATIOS OF THE FIRMS TO POTENTIAL INVESTORS: Current Ratio: The higher the ratio, the more liquid the company is. Nike & Under Armour have the best current ratios because they are greatly higher than one. A commonly acceptable current ratio for companies is a comfortable position for most enterprises. Debt to Equity Ratio: A higher debt/equity ratio is not good for companies. Amazon, Nike & Under Armour have the lowest debt/equity ratios, significantly lower than one. Asset Turnover Ratio: Amazon and Under Armour have the best asset turnover ratio, slightly better than the other 4 companies. The higher the ratio, the better it is because this means that the company is able to utilize its assets to generate sales. Profit Margin: Apple & Coca-Cola have the best profit margins. Generally, a profit margin of 10% net is considered average, a 20% margin is considered high and good, and 5% margin or lower is considered low and not great. Price to Earning Ratio: Netflix's P/E ratio is the highest, higher P/E is not good if it cannot provide higher earnings. Lower P/E ratio means that the share is cheaper. Market to Book Ratio: Netflix's price to book value ratio is the highest because its market capitalization and current price are the highest Formula Apple Amazon Netflix Coca-Cola Nike Under Armour 162819/105 718= 1.54 96334/8781 6178.504/6 20411/26973 16525/7866 2 = 1.10 855.696 = = 0.76 = 2.10 0.90 2702.209/1422 .009 = 1.90 Current Ratio Current Assets/ Current Liabilities Debt/Equity Ratio Debt / Equity 91807/9048 8 = 1.01 23414/6206 14759.26/7 27516/1898 0=0.38 582.157 = 1 = 1.45 1.95 3464/9040 = 0.38 592.687/2150. 087 = 0.28 Asset Turnover Total Sales / Total Assets 260174/338 516 = 0.77 280522/225 20156.447/ 37266/8638 248 = 1.25 33975.712 1 = 0.43 = 0.59 39117/23717 5267.132/4843 = 1.65 .531 = 1.09 Profit Margin Net Income/ 55256/2601 Net Sales 74 = 21.24% 11588/2805 1866.916/2 22 = 4.13% 0156.447 = 9.26% 8920/37266 = 23.94% 4029/39117 = 10.30% 92.139/5267.1 32 =1.75% 92.139/454 $0.20 2150.087/454 = $4.74 EPS Net Income / 55256/4380 11588/498 1866.916/4 8920/4820 = 4029/1240 = No. Shares $12.62 = $23.27 38.81 = $1.85 $3.25 Outstanding $4.25 Book value per Equity / No. 107147/438 62060/498 7582.157/4 18981/4280 9040/1240 = share Shares 0 = $24.46 = $124.62 38.81 = = $4.43 $7.29 Outstanding $17.28 Price to earning Share price / 273.36/12.6 1883.75/23. 369.03/4.25 53.49/1.85 = 89.38/3.25 = EPS 2 = 21.66 27 = 80.95 = 86.83 28.91 27.50 Market to book Share price / 273.36/21.6 883.75/124. 369.03/17.2 53.49/4.43 = 89.38/7.29 = Book value 7 = 12.61 62 = 15.12 8 = 21.36 12.07 12.26 12.48/0.2 = 2.63 12.48/4.74 = 2.63 per share $273.36 $1,883.75 $369.03 $53.49 $89.38 $12.48 Closing stock price EXPLANATIONS OF THE RATIOS OF THE FIRMS TO POTENTIAL INVESTORS: Current Ratio: The higher the ratio, the more liquid the company is. Nike & Under Armour have the best current ratios because they are greatly higher than one. A commonly acceptable current ratio for companies is a comfortable position for most enterprises. Debt to Equity Ratio: A higher debt/equity ratio is not good for companies. Amazon, Nike & Under Armour have the lowest debt/equity ratios, significantly lower than one. Asset Turnover Ratio: Amazon and Under Armour have the best asset turnover ratio, slightly better than the other 4 companies. The higher the ratio, the better it is because this means that the company is able to utilize its assets to generate sales. Profit Margin: Apple & Coca-Cola have the best profit margins. Generally, a profit margin of 10% net is considered average, a 20% margin is considered high and good, and 5% margin or lower is considered low and not great. Price to Earning Ratio: Netflix's P/E ratio is the highest, higher P/E is not good if it cannot provide higher earnings. Lower P/E ratio means that the share is cheaper. Market to Book Ratio: Netflix's price to book value ratio is the highest because its market capitalization and current price are the highest