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Listed below are some key metrics for four companies (FMC Corp, Caterpillar, Baker Hughes, and Eastman Chemical) for 2006-2008. After you review these metrics, write

Listed below are some key metrics for four companies (FMC Corp, Caterpillar, Baker Hughes, and Eastman Chemical) for 2006-2008. After you review these metrics, write a brief summary of what you would conclude about each of these firms performance during this time period.

a.

FMC (FMC Corp) 2006 2007 2008
DCFROI (Real) 5.50% 7.00% 9.20%
ROE Historical Cost 14.20% 14.70% 35.90%
EPS 1.89 2.08 4.47
EPS Minus Special Items 2.58 3.48 4.91
Cost of Capital S&P 500 (Real) 4.92% 5.16% 6.16%
AtivoEVA $Mil 3 51 101
AtivoMVA $Mil -120 808 1934
DCFROI-COC 0.58% 1.84%

3.04%

b.

CAT (Caterpillar) 2006 2007 2008
DCFROI (Real) 11.70% 10.80% 8.50%
ROE Historical Cost 50.60% 39.00% 57.60%
EPS 5.37 5.55 5.83
EPS Minus Special Items 5.47 5.55 5.77
Cost of Capital S&P 500 (Real) 4.92 5.16 6.16
AtivoEVA $Mil 3568 3305 1761
AtivoMVA $Mil 27383 26198 16384
DCFROI-COC 6.78% 5.64% 2.34%

c.

BHI (Baker Hughes) 2006 2007 2008
DCFROI (Real) 15.30% 16.20% 15.00%
ROE Historical Cost 44.30% 23.80% 24.10%
EPS 7.26 4.76 5.32
EPS Minus Special Items 3.75 4.76 5.39
Cost of Capital S&P 500 (Real) 4.92% 5.16% 6.16%
AtivoEVA $Mil 812 1011 966
AtivoMVA $Mil 18155 17856 11959
DCFROI-COC 10.38% 11.04% 8.84%

d.

EMN (Eastern Chemical) 2006 2007 2008
DCFROI (Real) 4.10% 5.20% 2.00%
ROE Historical Cost 20.50% 14.90% 20.30%
EPS 4.98 3.89 4.36
EPS Minus Special Items 5.16 4.72 4.62
Cost of Capital S&P 500 (Real) 4.92% 5.16% 6.16%
AtivoEVA $Mil -150 -37 -481
AtivoMVA $Mil -3236 -1725 -2671
DCFROI-COC -0.82% 0.04% -4.16%

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