Five questions (400 words a questions):
1:Look at the change in cash for AT&T between years 2016 and 2018. How and why did AT&T increase their cash balance so much in one year, and what event caused the cash balance to drop again in 2018? Were there any other accounts that changed because of this event? Be specific.
2:Compare and contrast the statement of cash flows for both companies. Choose two line items that stand out to you and talk about the similarities or differences between AT&T and Verizon for those line items. You might choose cash flow from operations, purchase/sale of equipment, issuance/payment of debt, dividend payments, etc
Depending on what line you choose, what does it say about each company’s level of growth, liquidity, investments, commitment to shareholders, etc. when compared to each other?
3:Compare each company’s revenue and profitability ratios. Which company is performing better from a revenue standpoint? Profitability? Why? Be specific.
4:Which company has a higher market and book value? Does it make sense why this company is valued higher? Explain.
5:Based on your analysis of AT&T and Verizon, which company is performing better financially? Which company is a better investment? Explain. Back up your opinion with financial data.
