business finance df post

1. Choose two firms that compete within the same industry (e.g., J.C. Penney and Sears, Johnson & Johnson and Merck, Ford and GM).Go to each firm’s website, and then access and download their annual reports (financial statements).

Using the accounting data from the firms’ financial statements and the ratios studied in Chapter 9 of the textbook, calculate all ratios for each firm (liquidity ratios, activity ratios, profitability ratios, leverage ratios, and coverage ratios).

Analyze and compare your calculations for the two firms. (please do not use Coke & Pepsi or Nike & Asics

2.Choose a firm whose stock is traded on stock exchanges, and then visit its website.

Go to the Investor Relations area of the website (or a similarly titled area such as Investor Information, Investors, Investor Resources, etc.), and then locate the firm’s annual report (typically found under Financial Reports, Financial Statements, Financial Facts, Financial Document, or some such link).

From the report, determine how the firm is financing investment in assets: long-term debt, preferred stock, and common stock.

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