Question

For each of the five corporation URLs,

(a)Compute the “rate earned on stockholders’ equity” ratio foreach of the five URL companies. It measures the rate ofprofits earned on the amount invested by the stockholders.It is computed by dividing the net income for the year bythe average stockholders’ equity for the year (for simplicitydon’t average the stockholders’ equity; instead just use thestockholders’ equity at the end of the year).

(b) Rank the five URL companies according to profitability.

1-Starbuck’s

https://www.last10k.com/sec-filings/sbux#sF5873F7A06125FDDA38F31A98C8867EC

2-Boeing Corporation

http://s2.q4cdn.com/661678649/files/doc_financials/annual/2016/2016-Annual-Report.pdf

3-Walmart Corporation

http://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-Annual-Report-PDF.pdf

4-General Motors

http://annualreports.com/HostedData/AnnualReports/PDF/NYSE_GM_2016.pdf

5-Microsoft Corporation

http://www.microsoft.com/investor/reports/ar16/index.htm

Answer 1