Comparing between two stocks within the same sector in saudi market
Prince Sultan University
The purpose of this assignment is to familiarize the student with the different sources of funds that are commonly used in publicly traded companies in the Saudi Stock Market and to relate it to the agency theory.
* Choose any Two Stocks from the same sector in the Saudi stock market except banks or insurance co.
Perform the following:
- Calculate the current ” recent” Debt to Equity ratios.
- Compare your calculated ratios to the average of the chosen sector.
- Interpret your findings where you compare each stock with the sector average in the context of Debt- to- Equity ratios and leverage benefits to shareholders.