2013 and 2014 financial statements for Deere and Company, AGCO Corporation and Caterpillar Inc.

Requirement 1: Prepare a spreadsheet that shows the calculations for each companys 2013 and 2014: Return on Equity, and Price to ending Book Value.

Requirement 2: Evaluate each companys Price to Book Value multiple in the context of their own ROE.

Requirement 3: Evaluate the Price to Book Value multiples of each company relative to each other.

Requirement 4: Based on your calculations for 2013 and 2014 which stock looks most attractive to you as a potential future investment, why? the figue can be found on the company financial statment.Fourth Quarter 2014 Press Release (in millions of dollars) Unaudited Three Months Ended October 31 Twelve Months Ended October 31 2014 2013 % Change 2014 2013 % Change Net sales and revenues: Agriculture and turf $ 6,169 $ 7,102 -13 $ 26,380 $ 29,132 -9 Construction and forestry 1,874 1,522 +23 6,581 5,866 +12 Total net sales 8,043 8,624 -7 32,961 34,998 -6 Financial services 762 699 +9 2,577 2,349 +10 Other revenues 160 128 +25 529 448 +18 Total net sales and revenues $ 8,965 $ 9,451 -5 $ 36,067 $ 37,795 -5 Operating profit: * Agriculture and turf $ 682 $ 996 -32 $ 3,649 $ 4,680 -22 Construction and forestry 228 118 +93 648 378 +71 Financial services 261 241 +8 921 870 +6 Total operating profit 1,171 1,355 -14 5,218 5,928 -12 Reconciling items ** (105) (111) -5 (429) (445) -4 Income taxes (417) (437) -5 (1,627) (1,946) -16 Net income attributable to Deere & Company $ 649 $ 807 -20 $ 3,162 $ 3,537 -11 * Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains or losses. ** Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses and net income attributable to noncontrolling interests.

Fourth Quarter 2013 Press Release (in millions of dollars) Unaudited Three Months Ended October 31 Twelve Months Ended October 31 2013 2012 % Change 2013 2012 % Change Net sales and revenues: Agriculture and turf $ 7,102 $ 7,393 -4 $ 29,132 $ 27,123 +7 Construction and forestry 1,522 1,654 -8 5,866 6,378 -8 Total net sales 8,624 9,047 -5 34,998 33,501 +4 Financial services 699 633 +10 2,349 2,235 +5 Other revenues 128 112 +14 448 421 +6 Total net sales and revenues $ 9,451 $ 9,792 -3 $ 37,795 $ 36,157 +5 Operating profit: * Agriculture and turf $ 996 $ 931 +7 $ 4,680 $ 3,921 +19 Construction and forestry 118 120 -2 378 476 -21 Financial services 241 191 +26 870 712 +22 Total operating profit 1,355 1,242 +9 5,928 5,109 +16 Reconciling items ** (111) (129) -14 (445) (385) +16 Income taxes (437) (425) +3 (1,946) (1,659) +17 Net income attributable to Deere & Company $ 807 $ 688 +17 $ 3,537 $ 3,065 +15 * Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains or losses. ** Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses and net income attributable to noncontrolling interests.