1).Select two competing companies from the same industry
(e.g., McDonalds vs. Burger King; Target vs. Walmart; etc.), calculate their
financial ratios and measures (see below) based on their 2014 financial
statements, and discuss from an investor’s point-of-view in which of the two
companies you would rather invest. Briefly explain your decision in one paragraph
.

2).Structure of the work:

– Briefly describe the two companies and the industry that
they are competing in.

– Calculate the following financial ratios/measures for both
companies:

o 1) Return on Equity

o 2) Return on Assets

o 3) Profit Margin Ratio

o 4) Working Capital

o 5) Current Ratio

o 6) Quick (Acid-Test) Ratio

o 7) Debt-to-Equity Ratio

o 8) Cash Flow from Operations to Total Liabilities Ratio

3). Discuss from an investor’s point of view why you would
rather invest in one company over the other one.

Refer to the ratios/measures that you calculated. You may
also include information and opinions about other factors (e.g., non-financial
factors, market information) that influence your decision. The executive summary
should be approximately 1 to 2 pages long (without the financial ratios table).

Format of Paper:

– Font size 12

– Single-spaced (ratios can be shown in single-spaced or
table format)

– Font type: Times New Roman

How to retrieve Financial Statements/Financial Information:

o Go to: www.Finance.Yahoo.com

o At the top of the webpage, insert the company name next to
the “Search Finance” button. Then, click on “Search Finance”.

o You are now on the “Summary” screen. This page already
contains some more relevant financial information.

o On the left side of the screen, there is a column called
“More on…” In that column, you find more relevant financial information under
“Key Statistics,” “Income Statement,” “Balance Sheet,” and“Cash Flows.”