pick two companies in the same industry to evaluate, compare, and contrast. (you may pick any ... Question: Pick two companies in the same industry to evaluate, compare, and contrast. (You may pick any com... Pick two companies in the same industry to evaluate, compare, and contrast. (You may pick any companies youd like as long as they are in the same industry and their financial information is public.) 1. Which companies did you choose and what are their stock tickers? From which industry? I choose Dunkin Donuts and Starbucks For parts 2-7, you will need to look up the following information. You can find these metrics for each company on https://finance.yahoo.com/ ?on the Statistics tab (after searching for the company): ? Current Ratio ? Profit Margin ? ROA ? ROE ? Price/Sales Ratio ? Price/Book Ratio ? Beta Base the risk-free rate of return on the latest long-term US Treasuries composite (>10 years) 3.17 Base the expected market return on the 10-Year Trailing Total Returns (on the Daily tab - under 10-year) return of the S&P 500 6.66 For each metric 2-5, answer the following parts: A. List the metric you found for each company. B. What does this metric tell you about the company? C. Which company is better off and why? D. What could the company who is worse off do to improve? 2. Current Ratio 3. Profit Margin 4. ROA 5. ROE 6. Discuss the Price/Sales and Price/Book ratios and what they say about your companies. Do you think the companies could be undervalued or overvalued? 7. Use CAPM to calculate and answer the following questions. Show the formula you use and the numbers you plug in. A) What is the equity risk premium for each company? B) What is the required rate of return? C) What do your answers say about each company? Which is riskier? 8. Identify the strengths and weaknesses of each company. What would you recommend each company focus on to improve? 9. Which company do you believe is financially healthier? Explain your answer. I chose Dunking donuts (DNKN) and Starbucks (SBUX) they're in the food and coffee industry (DNKN): Current ratio: 2.79% Profit Margin: 40.78% ROA: 7.56% ROE: N/A Price/ Sales ratio: 6.31 Price/Book ratio: 703.98 Beta: 0.25 (SBUX): Current ratio: 1.09 Profit Margin: 18.71% ROA: 15.37% ROE: 85.01% Price/Sales ratio: 3.36 Price/Books ratio: 13.99 Beta: 0.51