English Question
Provide short background information for each firm. What is their line of business? What are the competitive advantages and disadvantages of each firm as compared to the other?
In the forecasted financial statements, do you forecast a deficit or a surplus for each of the two firms? How could the firms balance the balance sheet?
Suppose that you are a potential lender to both firms. Both firms want to borrow money from you at the same interest rate. Which firm would you more likely lend the money to? Why? Explain.
Overall, which firms’ management team does a better job at running the firm? Why? Explain.
Suppose that you are an investor and you plan to buy some shares in one of the two firms. Given the current market prices of the two firms and given your analyses, which firm is a better long-term investment? Why? Explain.