Choose two firms of interest from fiance.yahoo.com, finance.google.com, or money

Question

Choose two firms of interest from fiance.yahoo.com, finance.google.com, or money.msn.com and download their financial statements. For each firm: a. Write the ROE, the number of shares outstanding, the dividends per share, and the net income. b. Compute the sustainable growth rate (g = b * ROE), where b equals the plowback ratio. c. Calculate the total amount of dividends paid (dividends * number of shares outstanding), the dividend payout ratio (total dividends paid/net income), and the plowback ratio (1 - dividend payout ratio). d. What does this information reveal about the ROE for the firms you selected? Be sure to include the link for the financial statements that you select. Using Apple and Toyota

Explanation / Answer

ROE of GM is high contrasted with GE. This demonstrates GM shareholders are getting a great deal more profit for their capital contrasted with GE. However GM is not paying out any of its net salary as profits. GM may likewise be utilizing a bigger obligation capital base bringing on its value capital base to be lower and subseqently making the ROE figure improved.

GE GM ROE 4.365% 16.162% offers 10573000000 1564700000 div/offer 0.61 0 net wage 14151000000 9190000000 cost 30.66 36.34 absolute profits 6449530000 0

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