Collect the market ratios for the Microsoft for the last 3 years and its major competitor for the last year.

• 
  
  • Price/Earnings ratio
  • Price/Cash Flow ratio
  • Price/Book ratio
  • Price/Forward Earnings
  • PEG rati0
• Dividends per share

(These ratios are available on www.morningstar.com > type the stock symbol in the Search window to get into the company's page. Click on Valuation.

Dividends per share are available under tab Dividends)

 

Compare the market ratio results against the industry or main competitor . Are the common stockholders receiving an adequate return on their investment? In accordance with your findings, is it reasonable to buy the stock? Please explain