Question: This is your second interview with a prestigious brokerage firm for a job as an equity analyst. You survived the morning interviews with the department

This is your second interview with a prestigious brokerage firm for a job as an equity analyst. You survived the morning interviews with the department manager and the vice president of equity. Everything has gone so well that they want to test your ability as an analyst. You are seated in a room with a computer and a list with the names of two companies- Caterpillar (CAT) and Microsoft (MSFT). You have 90 minutes to complete the following tasks: Compare the valuation ratios across the two firms. How do you interpret the difference between them?

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The three Valuation Ratios that we calculated for CAT and MSFT are Looking at the PIE ratio we can s... View full answer

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