Question
1. Select two competing companies from the same industry (e.g., McDonalds vs. Burger King; Target vs. Walmart; etc.), and calculate the following financial ratios for
1. Select two competing companies from the same industry (e.g., McDonalds vs. Burger King; Target vs. Walmart; etc.), and calculate the following financial ratios for them based on their 2015 financial statements:
a. Return on Equity
b. Return on Assets
c. Profit Margin Ratio
d. Working Capital
e. Current Ratio
f. Quick (Acid-Test) Ratio
g. Debt-to-Equity Ratio
h. Cash Flow from Operations to Total Liabilities Ratio
Discuss from an investors point-of-view which of the two companies you would rather invest. Please refer to the ratios/measures that you calculated. You may also include information and opinions about other factors (e.g., non-financial factors, market information) that influence your decision.
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