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Q 1 . Choose any U . S . stock for which you can find price information from Yahoo! Finance ( finance . yahoo.com )

Q1. Choose any U.S. stock for which you can find price information from Yahoo! Finance (finance.yahoo.com).
a) Type in your company name or the stock symbol (if you know it) in the search field at the top of the page.
b) From the menu, choose Financials and click on Annual. You will see 4 years of income statement, balance sheet, and cash flow data.
c) For each financial statement date, find the historical stock price on the last day of the corresponding month. You will find the data under the menu Historical Data. Use the closing stock price (not the adjusted close) and the Basic Average Shares on the income statement to calculate the firms market capitalization at each date.
d) For each of the four years, compute the following ratios.
Price-Earnings Ratio (for EPS use Diluted EPS)
Market-to-Book Ratio
Operating Margin
Net Profit Margin
Return on Equity
Return on Assets
Current Ratio
Interest Coverage Ratio (EBIT/Interest Expense)
Debt-Equity Ratio (market)
Debt-Equity Ratio (book)

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