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Only answer problem3(a) and (b), thanks 2. In your position as research assistant to a portfolio manager, you need to analyze the profitability of the
Only answer problem3(a) and (b), thanks
2. In your position as research assistant to a portfolio manager, you need to analyze the profitability of the companies in the portfolio. Using the data for Electronic Arts, Inc. (NASDAQ: EA) below: Fiscal Year Total Revenue Net Income 2016 4,396 1,156 2015 4,515 875 2014 3,575 8 2013 3,797 98 2012 4,143 76 a. Calculate the net profit margin for each year. b. Calculate the compound average annual growth rates (CAGR) for revenue and net income using the GEOMEAN function. Is net income growing more slowly or faster than total revenue? Is this a positive for your investment in the company? Calculate the average annual growth rate of total revenue using the AVERAGE function. Is this result more or less accurate than your result in the previous question? Why? d. Create a Column chart of total revenue and net income. Be sure to change the chart so that the x-axis labels contain the year numbers, and format the axis so that 2016 is on the far right side of the axis. c. 3. Repeat Problem 2 using the data below for Kroger Co (NYSE: KR). However, this time you should create a copy of your worksheet to use as a template. Replace the data for Electronic Arts with that of Kroger. Fiscal Year Total Revenue Net Income 2016 2015 109,830 108,465 2,039 1,728 2014 98,375 1,519 2013 96,619 1,497 2012 90,269 602 a. Which company's sales were growing faster over this period? Which one had the faster net income growth? b. Which company was more profitable in 2016? Which was more profitable if you take a longer view? Would the volatility of the net profit margin affect your desire to invest in one company or the otherStep by Step Solution
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