Written Assignment #1

Written Assignment #1

Part A: Find the most recent Annual Report for Wal-Mart, Boeing, IBM, and Disney. Using only annual numbers, please calculate the common financial ratios found in table 3.5 in the textbook for these companies. What do these ratios mean? Are the ratios similar for all of the companies? Why or why not? Do these numbers make any sense? Do they correspond with your expectations?

Part B:

Locate the Balance sheets for the same companies as in Part A. What is the book value of equity these companies? The market value of a company is the number of shares of stock outstanding times the price per share. This information can be found on the internet using the ticker symbol for each of the companies. What is the market value of the companies equity at the market close of the same date as the book value? (And now the important part…) Why are the numbers not the same? Which number is more relevant for shareholders, investors, financiers, etc.? Why is one value better to use than the other?