Evidence of efficient or inefficient market

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As a recent MBA graduate, you have been hired as a financial analyst by a private equity firm. Your firm along with the management of Advanced Micro Devices, Inc. (AMD) is investigating the possibility of taking the company private, i.e. your firm and AMD’s management will buy all of the shares. For the computations, use the information found on the Yahoo! Finance web pages for Advanced Micro Devices, Inc. (AMD). The numbers used would be for the financials of December 30, 2017 and December 31, 2016. Other computations and issues, which require information that is more current, will be found on these webpages as well as Gurufocus.com and Morningstar.com. For discussion questions, a good source of information is found in the 2017 Annual Report for AMD, as well as recent articles concerning AMD. The link to the company’s official web site is found in the Profile page on Yahoo! Finance. Your grade for the qualitative answers depends on the quality and quantity of relevant information, as well as the quality of writing.

a) Compare and discuss the PE ratios for AMD and NVDA

b) Discuss the overall financial health of AMD

c) After the final price is determined for AMD, do you believe that this is evidence of an efficient or inefficient market? Explain.

Reference no: EM132068626

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