Homework Set #1: Chapters
1, 2, & 3
Due Week 2 and worth 100 points
Directions: Answer the following
questions on a separate document. Explain how you reached the answer or show
your work if a mathematical calculation is needed, or both. Submit your assignment
using the assignment link above.
A. In your own words, please
identify two different stock exchanges in the United States. Describe the
similarities and differences between the two stock exchanges. Identify one
stock from each of the two stock exchanges.
B. Using the two stocks you
identified, determine the free cash flow from 2013 & 2014. What inference
can you draw from the companies’ free cash flow?
C. Using the information and
formulas from your textbook, please prepare two financial ratios for each
stock, using the 2013 & 2014 financial statements, to include: liquidity
ratios, asset management ratios, and profitability ratios. You should have a
total of six ratios for each stock, per year. What challenges, strengths, or
weaknesses do you see? Please be articulate.
