From Case 4, imagine you are the consultant who has to make the recommendation on whether or not to purchase Anheuser-Busch. Determine the rate of return you could expect from your investment and the method you would use to evaluate the investment decision. Assess the disadvantages and advantages of each investment method located in Chapter 4, and choose the one that would provide the most accurate measure for your anticipated rate of return requirement. Justify your recommendation.
Note: The current Chapter 4 in your textbook is incorrect. Please use the Chapter 4: Capital Investment Decision file located in the Student Center under eChapters, or click here to download the file.
From the e-Activity, utilize the same ratios as you had in Part 1 of this discussion to analyze the investment in Anheuser-Busch. Choose one brewery that you researched, and compare the results of those financial ratios to those from Anheuser-Busch. Make a recommendation as to which company is the better investment.
e-Activity: Use the Internet to research financial ratios of the top-10 American breweries. Be prepared to discuss.