What is the price-earnings ratio and what the number means


Problem

Business Case Analysis and Information engage in the research and analysis of a public company to determine its market strengths and viability. The answers to the questions should be in narrative form and not just a simple one-liner void of context. The objective is to create a picture or profile of the company as if you were pitching the company to a wealthy investor. As a group, you will collectively select one company all of you find interesting. If another team selects the company and records their choice with the instructor, your team will have to select another suitable company to research. Thus, I suggest that in your deliberations to select a company, you also consider a choice B in the event your choice A is already taken. The following questions should form the basis of your research and analysis: Name of company Stock ticker symbol State of incorporation Nature of operations Total assets for most recent balance sheet Total revenue from most recent income statement Net Income from most recent income statement What classes of stocks they have (common, preferred or both)? What is the market price the day before presenting your findings? What are the highs and lows of the stock price for the past year? What are the basic earnings per share and describe what the number means? How much did they pay out in dividends per share and what was the dividend yield? Describe what the numbers mean. What is the price-earnings ratio? Describe what the number means. explain the following ratios for your company considering the industry average or their peer group. comparison to determine how your company stock up against competitors of the same size and industry. Determine the following ratios and provide some analysis. Market-to-book ratio Gross margin Net profit margin Operating profit margin Return on equity Debt ratio Current ratio Total asset turnover ratio Inventory turnover ratio Accounts receivable turnover Times interest earned Fixed asset turnover Gross profit margin. Finally, summarize some of the key or significant developments within and outside your company that had an impact on its performance over the last year: 2020. Based on your research and analysis of the financial statements, what advice would you give an investor, and would you consider investing your own money in your company? Here are some companies I would like the group to consider researching Lowe's Company.

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Business Management: What is the price-earnings ratio and what the number means
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