Assume that you are a trust officer for the Bank of New York. You are attempting to select a pharmaceutical manufacturer’s stock for a client’s portfolio. You have secured the following data:

Required:
Comment on the relative performance of these firms.

Transcribed Image Text:

Ive-Tear Averages Sales growth Net income growth Asset growth Industry Average 93% 16.0 7.0 Firm A 8.8% 15.3 6.6 Firm B 10.2% 18.9 8.3 Firm C 10.0% 17.4 8.9 Firm D 70% 15.6 6.3 Current Year Return on equity Return on assets 18.4% 10.4 30.0 20.8% 12.8 37.0 19.5% 22.7% 13.7 39.0 17.3% Dividend payout 31.0 29.0