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Can you answer these questions for 3 firms total for me? Choose 3 firms that interest you and download their financial statements from any of

Can you answer these questions for 3 firms total for me?

Choose 3 firms that interest you and download their financial statements from any of these websites: finance.yahoo.com, finance.google.com, money.msn.com.

Part A:

a. For each firm, find the return on equity (ROE), the number of shares outstanding, the dividend per share, and the net income. Record them in a spreadsheet.

b. Calculate the total amount of dividends paid (dividends per share X number of shares outstanding), the dividend payout ratio (total dividends paid / net income), and the plowback ratio (1-dividend payout ratio)

c. Compute the sustainable growth rate, g=b x roe, where b equals to the plowback ratio.

d. Compare the growth rates (g) with the P/E ratios of the firm by plotting the P/Es against the growth rates in a scatter diagram. Is there a relationship between the two?

e. For each firm, compare the three-year growth rate of earnings per share with the growth rate you calculated above. Is the actual rate of earnings growth correlated with the sustainable growth rate you calculated?

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