On the Internet, obtain publically filed documents containing the 2014 and 2015 financial statements for Deere and Company, AGCO Corporation and Caterpillar Inc., and stock price information from yahoo.com/finance.
Requirement 1: Prepare a spreadsheet that shows the calculations for each company’s 2014 and 2015: Return on Equity, and Price to ending Book Value.
Requirement 2: Evaluate each company’s Price to Book Value multiple in the context of their own ROE.
Requirement 3: Evaluate the Price to Book Value multiples of each company relative to each other.
Requirement 4: Based on your calculations for 2014 and 2015 which stock looks most attractive to you as a potential future investment, why?