- Assume you have the opportunity to buy stock in three different, publicly traded, restaurant chains.
- Below is a chart containing some basic financial information on the three companies:
|Information from the income statement|
|Information from the balance sheet|
|Number of Shares of Stock||347,680,000||20,870,000||44,950,000|
- Complete the template chart on Blackboard by calculating each amusement park’s:
- Net Income ($)
- Return on Sales (%)
- Current Ratio
- Stockholder Equity ($)
- Return on Equity (%)
- Debt to Equity (%)
- Earnings Per Share ($)
- Be sure to list all ratios in the proper units.
- Some ratio’s may not be meaningful if the net income is negative!
- Remember to multiply times 100 to move the decimal point beforelisting amounts as a percent (%).
- Determine which restaurant chain is the best investment based on the ratio analysis.
- Go to Yahoo! Finance – Business Finance, Stock Market, Quotes, Newsand find one article providing qualitative information as to why you should or should not invest in this amusement park or the industry overall.
- Hint:Try clicking/reading the headline page links.
Write an Executive Summary with the chart attached addressing the following points:
- Summarize the findings of your ratio analysis on each restaurant company including: (Worth 10 points each = Total 30 points)
- Important low and high points
- What do the ratios tell you about the company’s operations?
- What qualitative information did you find and summarize its impact on your decision? (Worth 20 points)
- Provide a final overall choice and explain why. (Worth 10 points)
- List all sources in MLA format. (Worth 10 Points)
- Spelling and Grammar Corrected! (Worth 10 Points)
Completed Ratio Chart with correct calculations