Manufacturer shares for client portfolio

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Reference no: EM132072638

Assume that you are a trust officer for the Afri Bank. You are attempting to select a pharmaceutical manufacturer’s shares for a client’s portfolio. You have obtained the following data:

5 Year averages

Industry average

Opal Main Darcy Hunt

Sales growth 8.3% 9.8% 7.9% 7.2% 10.1% Net income growth 13.0 12.0 10.7 4.2 16.1 Asset growth 5.0 6.1 4.6 4.4 6.2

Current year

Industry average

Opal Main Darcy Hunt

Return on equity 16.2% 17.5% 17.5% 19.4% 21.6% Return on assets 8.5 7.8 12.7 8.4 11.4 Dividend payout 43.0 40.0 23.0 31.0 31.0

Required:

Comment on the relevant performance of each of the companies.

Reference no: EM132072638

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