Internet Exercise #1

As you know, a company’s return on investment (or ROI) is the product of its margin and turnover. Financial analysts often compute and analyze a company’s ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to precisely determine which of the company’s assets are operating assets and which are non-operating assets. Although this obstacle is a limitation, the information is still useful to some extent. Use the Hoovers Online site at http://www.hoovers.com/ to access financial information for the two companies listed below. (After entering the company name in the site search box at the top of the page and pressing enter, click on the “Financials” link that appears under the company name near the top of the page, and then click on the “Annual Financials” tab in the left-hand margin of the page that appears.) Using data from the two most recent annual reports of these two companies, compute the margin, turnover, and ROI for each for the two most recent fiscal years. Using these ratios briefly discuss each company’s performance and then to compare and contrast the performances.

1. Hershey Foods Corporation
2. Nestlé S.A.

Internet Exercise #2

Perform an Internet search using the term, economic value added. Select and read a case study or article from the results of your search. (Make sure that you do not select an instructor’s lecture notes or a class assignment from the results of your search.) Then, write a brief paper (3 - 5 paragraphs) that summarizes the case study or article. (Your paper should provide the appropriate citation for the article. If necessary, you may wish to refer to the following website, which includes information about citations: http://www.cod.edu/library/research/citenet.htm.)