Finance MEMo

Finance MEMo - To: Professor Scott From: Greg Sullivan RE:...

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To: Professor Scott From: Greg Sullivan RE: Financial Application Date: March 25, 2008 Introduction For this financial application I have gathered information on two prescription drug companies, Pfizer and Merck in search to find which was the better company overall. A Balance sheet and income statement of both companies were analyzed against one and other comparing the liquidity, operating efficiency, financial risk, profitability, valuation and expected future growth rates of the companies. After analyzing both companies I then went even further into research to find a significant event that altered the stock prices of one of my companies. I chose to research on the event of the recent acquisition of the drug company Wyeth by Pfizer. Finally after all the other research was completed, I searched for the auditor’s opinion on whether or not Pfizer’s financial statement was a qualified or unqualified opinion. The financial analysis began with a look at both companies liquidity. With both the current ratio and quick ratio, Pfizer had higher numbers for liquidity. This means that overall Pfizer is a more liquid company that Merck because the higher liquidity ratios show that it is easy for the company to pay off current obligations with the current assists that they have. By being more liquid it is evident that Pfizer is the company most likely not to ask for money to borrow to pay off debts, because they are making enough revenue
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This note was uploaded on 07/23/2009 for the course BU - taught by Professor - during the Spring '09 term at St. Michael.

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Finance MEMo - To: Professor Scott From: Greg Sullivan RE:...

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