Risk Analysis & Accounting Quality


  

Questions

1. Identify economic characteristics and competitive dynamics in the industry.

2. Identify the main strategies of the two companies.

3. Assess the quality of the financial statements (Income Statement and Balance Sheet).

4. Analyze profitability and risk. Calculate at least three profitability ratios and three risk ratios for FY 2011 to support your discussion.

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

INSTRUCTION:

Length: The analysis should be about three pages long (no strict minimum or maximum length).