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GE and TYCO International: Did the company achieving the greatest profit maximization also achieve the greatest stockholder wealth maximization? If not, which strategy was more beneficial to the shareholders?

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Profit and Shareholder Wealth Comparison

GE and TYCO International-Financial Infomation attached

1.Common shareholder's equity (total equity less any preferred stock equity)
2.Market Capitalization (total common stock shares outstanding times latest stock price)
3.Net profit margins for each company for the past 3 years.
4.Divide each company's market capitalization by the company's shareholder's equity. This market-to-book ratio provides one measure of shareholders wealth crated by each company. Include calculations.
5.Based on these market-to-book ratios, which company's strategy has provided the greater shareholders wealth creation?
6.Calculate the average net profit margin for each company for the 3 years worth data obtained. Include your calculations. Based on these average net profit margins, which company ha done a better job of maximizing profits?
7.Did the company achieving the greatest profit maximization also achieve the greatest stockholder wealth maximization? If not, which strategy was more beneficial to the shareholders?
8.Which company's strategy has presented grater risk to the shareholders' investment?
9.Have the investors assuming that greater risk been rewarded with grater investment?

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Ratios computed and discussion of 513 words to assist you. No references.

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