Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following indicators are given for two companies in the U.S. computer industry and the corresponding data for the industry average for the period 2018-2020.

The following indicators are given for two companies in the U.S. computer industry and the corresponding data for the industry average for the period 2018-2020. Comment on the data given. Would you choose to invest in any of the companies A or B? Please substantiate your answer.

image text in transcribed

| (ROE) (ROA) P/E PEG 2018 2019 2020 1,5 1,6 1,9 1 1,1 1,2 50,00% 52,00% 55,00% 42,00% 40,60% 39,30% -4,00% 4,60% 5,90% -1,50% 5,90% 7,80% 2,60% 3,00% -2,20% 20 30 141,7 147,1 2018 2019 2020 1,9 2 2,3 1,5 1,3 1,4 48,00% 40,00% 38,00% 38,00% 36,00% 36,50% -1,50% 3,60% 3,80% -2,00% 5,00% 7,00% -1,00% 2,50% 3,00% 19 28 118,8 127,3 2018 2019 2020 1,6 1,8 2,1 1,3 1 1,4 44,00% 38,00% 45,00% 38,30% 35,60% 35,20% -3,00% 3,50% 3,10% -5,70% 5,50% 6,00% -2,50% 2,80% 2,40% 18,3 27,4 121,7 137 | (ROE) (ROA) P/E PEG 2018 2019 2020 1,5 1,6 1,9 1 1,1 1,2 50,00% 52,00% 55,00% 42,00% 40,60% 39,30% -4,00% 4,60% 5,90% -1,50% 5,90% 7,80% 2,60% 3,00% -2,20% 20 30 141,7 147,1 2018 2019 2020 1,9 2 2,3 1,5 1,3 1,4 48,00% 40,00% 38,00% 38,00% 36,00% 36,50% -1,50% 3,60% 3,80% -2,00% 5,00% 7,00% -1,00% 2,50% 3,00% 19 28 118,8 127,3 2018 2019 2020 1,6 1,8 2,1 1,3 1 1,4 44,00% 38,00% 45,00% 38,30% 35,60% 35,20% -3,00% 3,50% 3,10% -5,70% 5,50% 6,00% -2,50% 2,80% 2,40% 18,3 27,4 121,7 137

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_2

Step: 3

blur-text-image_3

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

Understanding ETF Options Profitable Strategies For Diversified Low Risk Investing

Authors: Kenneth R. Trester

1st Edition

007176030X, 0071760431, 9780071760430

More Books

Students also viewed these Finance questions

Question

Describe verbal and nonverbal considerations that affect delivery

Answered: 1 week ago