$.$ From the audited financial reports from ANZ, Westpac and Commonwealth bank of Australia calculate $($using the formulas learned in AF$420)$ the following ratios

for each of the three companies in your portfolio over the five$-$year period $($do not copy ratios from the

financial reports$)$:

a$.$ Liquidity: any two ratios

b$.$ Profitability: return on assets $($ROA$)$; return on equity $($ROE$)$

c$.$ Asset management: any two ratios

d$.$ Financial leverage: any two ratios

e$.$ Market values: price per share $(($PPS$)$ market price$)$; earnings per share $($EPS$)$; price

earnings ratio $($PE$)$

f$.$ Dividend pay$-$out ratio; retention ratio; internal growth rate; sustainable growth rate.

$5.$ Evaluate and interpret the ratios calculated in $(4).$

i$)$ Discuss and rank each company in your portfolio in terms of investment prospect based on the ratios

calculated.

ii$)$ Explain clearly the reasons for your ranking. $($look at the trends over the years and discuss growth

potential$).$

$6.$ Compare, evaluate and discuss the ratios for your portfolio of firms selected against the industry

averages. $($If industry averages are not available, just compare the ratios of the firms in your portfolio$).$

$7.$ Which of the ratios calculated provides the best measure of the valuation of a firm? Clearly explain

reasons for your answer.

access the Australian Stock Exchange $($ASX$)$ and select the $3$ companies that is ANZ, Westpac and Commonwealth bank of Australia