Hypothesis 4 was not supported. It was found that Bank of total debts to total America’s assets (D/A) ratio was at 89.9% in 2010 and decreased to 89.2% in 2011 as compared to ratio being 91.7% in 2010 and slightly increasing to 91.9% in 2011. JPMorgan’s Hypothesis 5 was supported. It was found that Bank of America started with a (P/E) ratio of -35.8 years in 2010 to get its money back, which means that the company never would get its investments back to a ratio of 554 years in 2011, which still means it will never get its money back because nobody will be alive for 554 years. Comparatively, for 2010 JPMorgan had a price-earnings ratio of 10.1 years and decreased down to 7.2 years.
Hypothesis 4 was not supported. It was found that Bank of America’s total debts to total assets (D/A) ratio was at 89.9% in 2010 and decreased to 89.2% in 2011 as compared to JPMorgan’s ratio being 91.7% in 2010 and slightly increasing to 91.9% in 2011. Hypothesis 5 was supported. It was found that Bank of America started with a (P/E) ratio of -35.8 years in 2010 to get its money back, which means that the company never would get its investments back to a ratio of 554 years in 2011, which still means it will never get its money back because nobody will be alive for 554 years. Comparatively, for 2010 JPMorgan had a price-earnings ratio of 10.1 years and decreased down to 7.2 years.
goldstein_heather_thesis.docx