Choose three competitor companies from a manufacturing industry, and three competitors(Costco, Target and Walmart) from either a service industry or retailing.

• Compare yields on the three companies' bonds, noting any differences in ratings and the companies' Debt ratios.
• Compare dividend yields and Price/Earnings ratios on the three companies' common stock.
• Assuming a required return equal to the companies' long-term bond yields plus 600 bps, estimate the common stock value using the DDM. Compare to the market value.