Two companies McDonald's and Coach. collect data from online

Select two companies in two different industries and do the following: Provide background information on the company and describe the industry in which the company operates in and its main products. Determine key macro economic factors in compacting each firm. List and describe the major competitors to the selected company. Evaluate each firm using potter's determinants of competition. Compute and interpret the financial ratios described for a five year period. Look at the trend in the ratios to determine if they are deteriorating or improving and compare them against peers or the industry: Current and quick ratios and net working capital Inventory turnover, fixed assets turnover and total assets turnover debt ratio and TIE. Gross profit margin and net profit margin and operating margin Roe and Roa Find beta, R squared, alpha and the residual standard deviation for each firm using Excel. Interpret the results and recommend which firm should be added to a well diversified portfolio. Use 60 months of return data for the calculations. Find the correlation between the two stocks and interpret. Estimate the required for each stock (SML) Estimate the sustainable growth rate (g) for each stock. Find it for 3 years and take an average. Evaluate the 5 and 10- years historic growth rate in earnings. Compare to sustainable growth method. Estimate the intrinsic value (price) of the two stocks using the 1) dividend discount model (DDM) approach and the 2) P/E multiplier approach. Make a buy or sell recommendation. Evaluate stock using value criteria of dividend yield and price to book. Use the Black-scholes model to find the value of a call option and the value of a put opion for each stock