Go to http://finance.yahoo.com/ and locate current financial information for GM and Toyota both in terms of the company's current financial statements and stock market prices. with this information:

a. Compare the financial ratios for both firms for the most recent year, and evaluate the relative performance of the two firms in the following areas:

1. Liquidity

2. Operating profitability

3. Financing practices

4. Return on the shareholders' investment

b. What is each firm's price/earnings ratio and market/book ratio? What do these ratios tell you?

c. Assume that the cost of captial (Investors' required rate of return) is 8 percent for both companies. Calculate the EVA for each company. Interpret your findings.

The cost of all capital as 0.08, or 8%