Question: Form groups of three to six students each. Each student should pick two companies, preferably from different industries. Find the appropriate data and compute the
Form groups of three to six students each. Each student should pick two companies, preferably from different industries. Find the appropriate data and compute the market-to-book ratio and the ROE for each company.
Assemble the group and list the companies selected, together with their market-to-book ratio and ROE. Rank the companies from highest to lowest on market-to-book ratio. Then rank them on ROE.
Explain why companies rank as they do in each list. Are the rankings similar; that is, is the ranking based on market-to-book similar to the ranking based on ROE? Explain why you would or would not expect similarity in the rankings.
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