calculate the return on equity of fki plc per u k gaap and per u s gaap explain the 613761

Financial Analysis in the U.S. and U.K.

Access the EDGAR archives and locate the Schedule 14D1 filing made by either Amdura Corporation or FKI plcon March 22, 1995 (they are identical). Hint: You can search for this filing on the SEC database by inputting the name of either company. It was filed when FKI plc, a U.K. corporation, made a successful tender offer for Amdura Corp., a U.S.corporation. The Schedule 14D1 contains, among other things, the financial statements of FKI plc as per U.K. GAAP and a reconciliation of its net income and shareholders’ equity as per U.K. GAAP to the U.S. GAAP equivalent.

Required

a. Calculate the return on equity of FKI plc per U.K.GAAP and per U.S.GAAP. Explain the major reasons for the difference.

b. Calculate the return on assets and operating income percentage of FKI per U.K. GAAP and U.S.GAAP, and explain the difference.

c. Compare the ratios of FKI plc with the return on equity, return on assets and operating income percentage of Parker-Hannifin (access EDGAR for the raw data to compute the ratios), a U.S.-based competitor of FKI plc. Should one use the U.S. GAAP-based numbers or the U.K. GAAP-based numbers for FKI plc?