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Select a company to evaluate. You can use the following link to a stock screener: http://www.marketwatch.com/tools/stockresearch/screener/ I chose JNJ ( johnson and johnson ) 2.Using

Select a company to evaluate. You can use the following link to a stock screener: http://www.marketwatch.com/tools/stockresearch/screener/

I chose JNJ ( johnson and johnson )

2.Using the most recent annual income and balance sheet data from http://www.msn.com/en-us/money, compute the following ratios (provide a printed copy of the financial statements when you turn it in, or send it electronically and provide links in your work.):

a.Liquidity: Quick Ratio

b.Asset: Inventory Turnover and TAT

c.Debt: Debt-Equity and Interest Coverage (TIE)

d.Profit: Gross Margin and ROE

e.Market: PE and PEG ratios

3.Compare at least one ratio from each category in part 2 to the industry ratio and provide a brief analysis of the company based on the comparison. Do you think its stock is currently over, under, or fairly priced?

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