Earnings per Share
Find the market ratios for the company for the last 1-3 years and its major competitor for the last year in the Internet. (15% of the project grade)· Price/Earnings ratio· Market/Book ratio (also called (Price/Book ratio)· Earnings per share· Dividends per share· Other market ratios on your choiceThese ratios are available on www.morningstar.com > Companys page under Valuation, Financials, and under DividendsYou can find these ratios in the Internet or calculate them. If you use published ratios you must indicate that and cite their source.a. Present the market ratios as the table(s) in your project.b. Write about 1 page of analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor. In your report please answer the question: Are the common stockholders receiving an adequate return on their investment?c. Compare the P/E ratio of your company with the industry average or 5-year average. Is the stock overvalued, undervalued, or properly valued? Why?d. In accordance with your findings, is it reasonable to buy the stock? Please explain your answers.-2) Analysis of the historical stock prices trend for the last year. (15% of the project gradea. Collect and evaluate the data about stock prices of the assigned company for the last one year for the company and its major competitor.b. Create the chart(s) using the stock price chart tools on the websites or Excel. Present the chart(s) in your project.c. Write about 0.5 page of analysis the historic stock prices trend for the last year.In accordance with your findings, is it reasonable to buy the stock? Why? Please explain your answer.-5- Develop a specific recommendation, with supporting rationale for the COMPANYS management – Think about the financial strategy of the company, how to best balance THE COMPANYS financial leverage to optimize shareholder wealth going forward taking into consideration the company’s current market position, credit rating, dividend policy, etc. (12% of the project grade).