Friday
November 21, 2014

Homework Help: Financial Data and Choosing stocks

Posted by Anonymous on Thursday, March 17, 2011 at 8:54pm.

Now that youíve analyzed a company based on its financial statement, letís compare two companies. Choose two related companies to answer the questions below (for example: Toyota & Honda, Apple & Microsoft).

Questions:

1. What two companies did you choose? How are they related?

I chose the companies JACK(Jack In The Box Inc.) and WEN(Wendy's/ Arby's Group)

~Im not really sure if these companies are related, are they? And how? They are both restaurants, that provide burgers and all.

2. Which of your companies do you think has the better financial performance? Why?

I heard that Jack in the Box does, but I'm not sure.

3. Look up the three ratios for each company (P/E, ROE, and Pre Tax Profit Margin) and record them in a table.

Jack in the Box:

P/E = 15.5
ROE = 13.5
Pre Tax Profit Margin = 4.6

Wendy's:

P/E = 24.9
ROE = 8.3
Pre Tax Profit Margin = 5.1


4. How might comparing financial statements and company performance help you to make investment decisions? Which of your companies would you invest in? Why?

Well you can find out which company makes higher profits. Just learning about this stuff, so what else?

I guess I would probably invest in Jack in the Box because its better with the ROE.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Business-EASY - 5. Click on the Show Chart link to the right of the company ...
Walmart and Superstore - These two companies are related to one another, and on ...
Financial management - What are the comparisons between the financial statements...
business - Assignment Choose a company that has experienced negative press ...
principles of business - Assignment Choose a company that has experienced ...
Advanced Accounting - GAAP rules are clear about when a company needs to ...
accounting - Refer to Target Corporation's financial statements Target ...
finance 32 - 32. the financial markets allocate capital to corporations by A. ...
accounting - Research/Ratio Assignment:Choose two competitor companies that are ...
accounting - What items appear in financial statements of merchandising ...

Search
Members