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Question 2 O pts Power Companies C and D are in the power-generation industry. One company focuses on solar power. This includes the manufacturing and

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Question 2 O pts Power Companies C and D are in the power-generation industry. One company focuses on solar power. This includes the manufacturing and selling of power systems as well as maintenance services for those systems. The other company owns large, mostly coal-powered electric-power- generation plants in countries around the world. Most of its revenues result from power-purchase agreements with a country's government that buy the power generated. Some of its U.S. assets include regulated public utilities. Hints: Look at PP&E. Which firm owns more assets? - Look for the effects of conservative financial policies of smaller, riskier firms. Solar Power is C, Coal-powered electrical generation is D O Solar Power is D, Coal-powered electrical generation is C Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8) Question 2 O pts Power Companies C and D are in the power-generation industry. One company focuses on solar power. This includes the manufacturing and selling of power systems as well as maintenance services for those systems. The other company owns large, mostly coal-powered electric-power- generation plants in countries around the world. Most of its revenues result from power-purchase agreements with a country's government that buy the power generated. Some of its U.S. assets include regulated public utilities. Hints: Look at PP&E. Which firm owns more assets? - Look for the effects of conservative financial policies of smaller, riskier firms. Solar Power is C, Coal-powered electrical generation is D O Solar Power is D, Coal-powered electrical generation is C Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8)