1. Research past dividend history for the following companies (both of which trade on the Toronto Stock Exchange) and based on your analysis, project what the future dividends and dividend growth might be. (Yes – this will be a guess, and probably a rough one at that). Assume that the appropriate discount rate (“r” that we used in class) is 6%. Calculate what you believe the stock price of each company should be using the Dividend Discount Model. Explain any discrepancies between your calculated stock price and the current stock price of the company. a.Empire Company b.Linamar 2.Use the comparables method to calculate what the stock price should be for both Empire Company and Linamar.

Financial analysis can be defined as the process of assessing the financial condition of a firm. It can be very useful in understanding the financial position of a company. There are varieties of ratios that can be used for this purpose but each has it benefits and limitations. Select two ratios you think are the most valuable when trying to understand the financial condition of a company and explain why you have selected them. Then use those ratios to assess two publicly traded US companies listed on the NASDAQ stock market. What do these ratios tell you about how investors assess the future prospects of these companies?