Chapter 17 Web Exercise 1. 3M (Minnesota Mining & Manufacturing Co.) was listed
ID: 2796946 • Letter: C
Question
Chapter 17 Web Exercise
1. 3M (Minnesota Mining & Manufacturing Co.) was listed in Table 17-1 as one of the companies having a large percentage of institutional ownership. Institutional ownership represents stock held by nonindividual such as pension funds, mutal funds, or bank trust departments. Let’s learn more about the company. Go to 3M’s website, www.3m.com, and follow these steps: Scroll to the bottom of the page and click “Investor Relations.” Click on “Stock Information” under “Investing in 3M.”
2. Scroll down and write down the following:
a. Recent price
b. 52-week high
c. 52-week low
d. 52-week price percent change
e. Average Daily Volume last 10 days
3. Return to the prior page and click on “Financial Information” and then click “Ratios” in the middle of the page. The average firm in 3M’s industry of diversified chemicals has the following ratios. How does 3M compare?
a. Price to earnings (P/E) : 21.0x
b. Price to sales : 2.4x
c. Price to book : 5.0x
d. Net profit margin : 15.0%
e. Current ratio : 1.1x
Explanation / Answer
2. a. Recent price = $239.56
b. 52-week high = $244.23
c. 52-week low = 171.09
d. 52-week price percent change = 244.23 - 172.63 = $71.6
e. Average Daily Volume last 10 days = 1872830 ( finding daily volume of last 10 trading days from website)
3 PE ratio of 3M is 26.94x. Compared to peers 3M is trading at a premium
PS ratio of 3M is 4.78x. Again shows 3M is trading at premium price compared to peers
PB ratio of 3M is 11.77x . which is higher than peers
Net profit margin is 17.71%. More profitable than its industry
Current ratio is 2.07x. more liquid than peers.
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