Case 4, imagine you are the consultant who has to make the recommendation
on whether or not to purchase Anheuser-Busch. Determine the rate of return
you could expect from your investment and the method you would use to
evaluate the investment decision. Assess the disadvantages and advantages
of each investment method located in Chapter 4, and choose the one that
would provide the most accurate measure for your anticipated rate of
return requirement. Justify your recommendation.
Note: The current Chapter 4 in your textbook
is incorrect. Please use the Chapter 4: Capital Investment Decision file
located in the Student Center under eChapters, or click here to download the file.
the e-Activity, utilize the same ratios as you had in Part 1 of this
discussion to analyze the investment in Anheuser-Busch. Choose one brewery
that you researched, and compare the results of those financial ratios to
those from Anheuser-Busch. Make a recommendation as to which company is
the better investment.
e-Activity: Use the Internet to research financial
ratios of the top-10 American breweries. Be prepared to discuss.