II. Three-Year Returns A. What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your...

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II. Three-Year Returns A. What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price. B. What is the three-year return on the stock price of the second company (Company B)? How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company’s stock price. C. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies? III. Financial Calculations A. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the earnings per share for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. IV. Industry Averages A. Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data. B. In this context, how is each company’s financial health? How do these two companies compare to one another? Consider the appropriate date range you should use. V. Performance Over Time A. Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. B. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. C. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier. VI. Investment A. Are the companies considered growth or value companies? Why? B. Which company’s stock is the better investment? Consider supporting your answer with data.
Answered Same DayOct 12, 2021FIN320University of the Sunshine Coast

Answer To: II. Three-Year Returns A. What is the three-year return on the stock price of the first company...

Komalavalli answered on Oct 15 2021
151 Votes
ii)
*100
A) Three year return on stock of Apple Inc. Company
In August 2016 return on apple stock was negative and it started to raise gradually till October 2018,
after that it fell down before February 2019 and it started to rise till March 2019 and it had fell down. After June 2019 it is experiencing an increase in its value.
B) Three year return on stock of Dell Company
In August 2016 return on Dell technologies stock was negative and it started to raise gradually before June 2017, after that it fell down till October 2019 and then it started to rise till February 2018, it had experienced a fell down. It reaches it maximum return in between the period of April 2019 and June 2016. After June 2019 it is experiencing a decrease in its value.
C) Comparison between 3 year return on apple and dell stock
By comparing the above two graphs we can say that 3 year annual return of dell was higher than 3 year annual return of apple inc. It became equal in one of the day, which exist in between 2017 and 2018.
IV)
Quick ratio is to test the companies ability to pay their short term debts
Quick ratio/ liquidity ratio = Liquid asset / current liabilities
Return on equity ratio = Net income/ share holder equity
Profit margin = net income /net sales
    Apple
    2018
    2017
    2016
    Debt/ equity ratio
    3.504009
    2.551985
    2.124328
    
    
    
    
    Return on equityratio
    55.56012
    36.07018
    35.62367
    
    
    
    
    Profit margin ratio
    22.4142
    21.09242
    21.1868
    
    
    
    
    
    
    
    
    Industry average ratios
    2018
    2017
    2016
    Current ratio
    1.123843
    1.276063
    1.352669
    
    
    
    
    Quick ratio
    1.089992
    1.227905
    1.325684
    
    
    
    
    P/E...
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