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Question 3 Consider the following data for the FY 2011 for Yahoo! and Google (in millions): Sales EBIT Depreciation & Amortization Net Income Market Capitalization

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Question 3 Consider the following data for the FY 2011 for Yahoo! and Google (in millions): Sales EBIT Depreciation & Amortization Net Income Market Capitalization Cash Yahoo! Google $5.984 $38,905 $725 $12.742 $548 $1,851 $1,049 $9.737 $19.191 $209,800 $1,562 $9.983 $994 $14,439 Debt a. Calculate and compare Yahoo and Google's operating margin, net profit margin, PE ratio. and the ratio of enterprise value to operating income and sales. 14 marks b. Which of the two companies will you like to invest and why? 6 Marks

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