Many sites on the Internet allow the retrieval of current stock price information. Among those sites are Marketwatch (cbs.marketwatch.com) and Quicken (www.quicken.com).
1. Access any site on the Internet that permits you to get a current stock quote. Determine the current price of Microsoft Corporation's common stock (MSFT) and that of Intel Corporation (INTC).
2. Access EDGAR on the Internet at www.sec.gov. Search for Microsoft and access its most recent 10-K filing. Search or scroll to find the income statement and related note(s). Determine the most recent earnings per share. Repeat this step for Intel.
3. Calculate the price-earnings ratio for each company.
4. Compare the PE ratios of Microsoft and Intel. What information might be gleaned from your comparison?