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For this case study, you will choose two publicly traded firms that compete in the same industry and complete financial ratio analysis on both. Based

For this case study, you will choose two publicly traded firms that compete in the same industry and complete financial ratio analysis on both. Based on the ratios you calculate, you will compose a detailed memo addressed to the instructor summarizing your analysis and recommendation for which company would be the better stock pick long term. The deliverables for this assignment are a spreadsheet with your financial ratio calculations and a written memo. Spreadsheet (15 points possible) Your spreadsheet should include the following items: 3 years of Balance Sheet and Income Statement data for both companies (financial information can be pulled from www.sec.gov or other financial websites) Prepare a common size income statement and balance sheet for each Calculate 3 years of financial ratios for both companies (must calculate sales and net income growth rates from year to year and all the ratios on the Ratio Formulas document on canvas under Files) Detailed Memo 1 page long, single spaced (15 points possible) Your memo should include the following items: A brief description of the two companies and the industry they operate in Compare the financial results of each company and identify areas of strengths and weaknesses of each Using the DuPont model, analyze the return on equity of each company (what factors and trends are affecting each companys return on equity) Given your analysis, which company would you recommend as the better investment option (must explain why)

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