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Individual Assignment part B (5% of final grade)

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Stock investing Select 2 companies in the same industry and go to each company’s stock information page on finance.yahoo.com. Use the information stated under “Statistics” to help answer the f... ollowing questions. (a) Fill out the following table for both companies (5 marks) Apple Sony Brief description of business Apple is a technology company, that develops, designs and sells electronic, computer software and online services. Sony is a leading provider of audio/video electronics and information technology products for consumer and professional markets. Forward P/E 30.40 19.19 Forward annual Dividend Yield 0.70% 0.61% Operating margin 24.52% 0.00% (b) What do these ratios tell you about each company? (5 marks) The forward P/E ratio divides the current share price of a company by the estimated future earnings per share. A higher earnings per share ratio indicates a company’s ability to generate profits for common shareholders of the company. Apple has a higher forward P/E this tells me that apple is capable of producing more money for its shareholders than Sony. The operating margin is how much profit a company makes after paying operating and non operating costs of running it. This tells me that Apple makes more money and hat it is more profitable than Sony. official dividend payment. This tells me that Sony is paying less money from profits to its shareholders. (c) Which one of the two companies would you invest in and why? (State any other information would you require to help you make your decision) (5 marks) [Show More]

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