Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the Chart above is for the company Facebook 1. Perform ratio analysis to learn how the firms performed over time and relative to one another.

image text in transcribedimage text in transcribed

the Chart above is for the company Facebook
1. Perform ratio analysis to learn how the firms performed over time and relative to one another. Make sure to include at least one ratio from the following categories: liquidity, asset management, debt management, profitability, and market value. Discuss the ratios and highlight any trends. Based on the ratio analysis, which company is most attractive and why? I suggest you create a table summarizing this information for all the companies covered by your group and include it in the word document. 2. What is the risk profile of the companies in your group? Which company is the riskiest? (a) What is its cost of equity (CAPM) for each of the companies? (b) According to the financial statements (management's discussions in annual reports), what are the biggest risk factors facing the firms in your group? Please discuss these risk factors. E G H I J K L 2019 8 10 11 A B C D From 10-k and/or Yahoo! Finance 2017 2018 Sales COGS SG&A EBITDA Dep EBIT Interest Exp EBT Tax NI Cash Total Current Assets Net Fixed Assets Price Shares Outstanding Beta 12 13 14 15 16 18 19 20 22 1) Ratio Analysis Liquidity 2017 2018 Current Ratio 2) Risk 2019 Beta from Yahoo! Finance Estimate of market risk premium Risk Free rate Asset Management Inventory Turnover Exp Ret Based on CAPM Debt Management According to the discussion in 10-k, increase in oil prices can potentially decrease margins .... TIE Profitability Operating Margin 39 Market Value P/E 1. Perform ratio analysis to learn how the firms performed over time and relative to one another. Make sure to include at least one ratio from the following categories: liquidity, asset management, debt management, profitability, and market value. Discuss the ratios and highlight any trends. Based on the ratio analysis, which company is most attractive and why? I suggest you create a table summarizing this information for all the companies covered by your group and include it in the word document. 2. What is the risk profile of the companies in your group? Which company is the riskiest? (a) What is its cost of equity (CAPM) for each of the companies? (b) According to the financial statements (management's discussions in annual reports), what are the biggest risk factors facing the firms in your group? Please discuss these risk factors. E G H I J K L 2019 8 10 11 A B C D From 10-k and/or Yahoo! Finance 2017 2018 Sales COGS SG&A EBITDA Dep EBIT Interest Exp EBT Tax NI Cash Total Current Assets Net Fixed Assets Price Shares Outstanding Beta 12 13 14 15 16 18 19 20 22 1) Ratio Analysis Liquidity 2017 2018 Current Ratio 2) Risk 2019 Beta from Yahoo! Finance Estimate of market risk premium Risk Free rate Asset Management Inventory Turnover Exp Ret Based on CAPM Debt Management According to the discussion in 10-k, increase in oil prices can potentially decrease margins .... TIE Profitability Operating Margin 39 Market Value P/E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

16th Edition

007352686X, 978-0073526867

More Books

Students also viewed these Accounting questions

Question

Suppose that f(x) x/8 for 3 Answered: 1 week ago

Answered: 1 week ago