A basis of stock valuation is the growth of cash flow
The company is Samsung. Please answer questions separately. 100% Original, thank you.A basis of stock valuation is the growth of cash flow ; it is a fundamental part of the dividend growth model from chapter 13. Return on Equity is the basis of growth of a company. Look at the decomposition of ROE in Chapter 14. Go to http://moneycentral.msn.com/investor, Reuters.com, or another website of your choice and review the financial results for the company you are researching. Find a competitor and research it also. You will need information on all key ratios and statements, to answer the following questions. Are there any substantial differences in the gross and net profit margins for the companies? Compare the profitability ratios of the companies as measured by return on equity and return on assets. Are there any significant differences in the financial condition ratios? Compare the growth in sales and income for the two companies over the last five years.Why does your firm do better or worse than the other? Use the DuPont formula to guide your analysis. For example, compare debt ratios, asset turnover, and profit margins. ROE drives the sustainable growth rate of companies so it is essential.