Case $1$

PARTI:

Congratulations! You are a highly sought$-$after executive in the oil and gas industry. In fact, two companies are competing to hire you as their new CEO:

ExxonMobil and Chevron. Both are intriguing opportunities, and you are struggling to make a decision. You have decided to base your decision on an

analysis of the companies' financial statements.

Please use the $3-$factor DuPont structure to compare the companies' results from $2021,2022,$ and $2023.$ Based on the results of your analysis, please

explain which job you have chosen.

PART II:

You are now the CEO of the oil and gas company you selected. You have decided that you want to grow revenues by $20\%$ in $2024.$ Using the Percentage of

Sales method, please prepare pro forma financial statements for $2024$ and determine the external financing you will need, if any, to reach your goal. $($Note:

You only need to do this for one of the two companies, depending on your answer in Part $1).$ Use the same dividend payout ratio as your firm used in

$2023$ and assume the companies' fixed assets are at $90\%$ capacity relative to their $2023$ sales.

What plug variable would you adjust to make your balance sheet balance? Why?

How will your firm's per$-$sh$$re value of owners' equity change from $2023$ to $2024?$