Question
Obtain the following information about Boston Scientific? (a) State the company's most recent annual Earnings Per Share, its current share price & Price Earnings Ratio;
Obtain the following information about Boston Scientific?
(a) State the company's most recent annual Earnings Per Share, its current share price & Price Earnings Ratio; and then comment on the PE. Note, you can take the first EPS figure stated by the company, rather than having to calculate it yourself?
(b) Calculate the Return on Investment percentage for the company, for example R.O.C.E. ( Return on Capital Employed). Show the figures you used for the calculation, and comment on the percentage.
(c) Compare the Return on Investment % with that of the previous year, and comment on whether it has improved or deteriorated, and whether margins or other issues caused the movement, showing your calculations. (Note, you are not expected to be an expert on the company, the key is that you would be able to point in the direction where further analyses could explain the change).
(d) Calculate the long term debt/equity for the company, show your calculations and comment on the results?
(e) Show two liquidity ratios for the company and comment on your figures?
(f) Determine the extra investment in non-current assets over the year, and calculate how much extra long-term finance was raised over the year. Discuss (Workings should be shown).
(g) Discuss briefly how the company's share price moved recently, and how this relates to the Efficient Market Hypothesis?
(h) Comment on how much you would have to pay to buy the company, compare with the net book value (from the accounts) and discuss briefly?
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