Tuesday, September 15, 2009

Chapter 4-table 7: Do financial statements help in Financial decisions and corporate valuation


Table 7: Distribution of the company Market Value by
---------------Period (In Millions of U.S. Dollars)

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-----Bank------------ 2004-----2005-----2006-----2007-----2008
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1. Compass
-----Group PLC-------6454-----6231--------5362 -----4661------4390
2. Toronto
--Dominion Bank----16785----18335-----22780-----25977-----36635
3. Harris Corp--------1680-----1841-------2362------2313-------3106
4. Morgan Stanley---123492---139647---180342----221893----214268
5. Boeing Co---------22165-----20597----12896-----16459------5688
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Table 7 shows the distribution of the companies Market Value by period (In Millions of U.S. Dollars). It reveals that the Compass Group PLC experienced decreased market value annually as evidenced by the values US$6454, US$6231, US$5362, US$4661, and US$4390 respectively. This means that the Compass Group PLC market power is getting weak annually.
The Toronto Dominion Bank made a dramatic change in the field of stock market because the company Market Value increased annually as evidenced by the values US$16785, US$18335, US$22780, US$25977, and US$36635 respectively. This means that Toronto Dominion Bank have established good concessions among other companies.
It is also remarkable that Harris Corp improved their market value in 2008 with US$3106. This value is very high in comparison to their 2004 level which was approximately US$1680 only. This means that the bank did plenty of upgrading within the short period.
Morgan Stanley has an increasing market value in 2004 to 2007 but decreased in 2008 as evidenced by the values US$123492, US$139647, US$180342, US$221893, and US$214268 respectively. This means that Morgan Stanley’s stockholders of equity are diminishing.
Boeing Co had a consistent decreasing market value from 2004 to 2006, but it increased from 2007 to 2008 as evidenced by the values US$22165, US$20597, US$12896, US$16459, and US$5688 respectively. This means that the number of shareholders of the bank is increasing.

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