Scenario 1 And the Winner Is:The will of a distant eclectic relative left you and your cousin as sole beneficiaries of an estate consisting of $500,000 in shares in Facebook, $500,000 in shares in Advanced Micro Devices (AMD), and $6,000,000 in bonds that will mature five years from now. The terms of the will stipulate that one of you will get all the Facebook shares, and the other will get all the AMD shares. When the bonds mature, they will be sold and the full proceeds from that sale will be given to the one of you two whose shares had been the most profitable investment.The will did not specify which one of you should get which shares. Instead, it required that the winner of a coin toss would get to select which shares to take. As luck woulds have it, you won the flip of the coin and get to choose which shares will be yours. To make the choice, your only resources are financial statements in the annual reports of the two companies.Make your choice and explain what information in the financial statements was particularly important for your decision.My solution:On making a choice onto which company to buy shares in, I considered the following major factors:Price and valuationEvaluation of financial healthEvaluation of competitive sustainabilityTable 1 – Comparative Stock StatisticsCategoriesPrice (par value)Price per shareCommon Stock (millions)Amount of Common Stock shares (as of 2014)Amount of Outstanding Common Stock shares (as of 2014)Cash flow from operations 2012 (millions)Cash flow from operations 2012 (millions)Facebook$0.000006$38.00 (May 2012)$6151,975,722,473574,020,314$148$4,222AMD$0.01$4.08 (Jan., 2013)$7612,745,098$338$1,612Based on the scenario, what information from the annual reports can you extract to decide which company will be the most profitable investment, and which would you choose?

Scenario 1 And the Winner Is:The will of a distant eclectic relative left you and your cousin as sole beneficiaries of an estate consisting of $500,000 in shares in Facebook, $500,000 in shares in Advanced Micro Devices (AMD), and $6,000,000 in bonds that will mature five years from now. The terms of the will stipulate that one of you will get all the Facebook shares, and the other will get all the AMD shares. When the bonds mature, they will be sold and the full proceeds from that sale will be given to the one of you two whose shares had been the most profitable investment.The will did not specify which one of you should get which shares. Instead, it required that the winner of a coin toss would get to select which shares to take. As luck woulds have it, you won the flip of the coin and get to choose which shares will be yours. To make the choice, your only resources are financial statements in the annual reports of the two companies.Make your choice and explain what information in the financial statements was particularly important for your decision.My solution:On making a choice onto which company to buy shares in, I considered the following major factors:Price and valuationEvaluation of financial healthEvaluation of competitive sustainabilityTable 1 – Comparative Stock StatisticsCategoriesPrice (par value)Price per shareCommon Stock (millions)Amount of Common Stock shares (as of 2014)Amount of Outstanding Common Stock shares (as of 2014)Cash flow from operations 2012 (millions)Cash flow from operations 2012 (millions)Facebook$0.000006$38.00 (May 2012)$6151,975,722,473574,020,314$148$4,222AMD$0.01$4.08 (Jan., 2013)$7612,745,098$338$1,612Based on the scenario, what information from the annual reports can you extract to decide which company will be the most profitable investment, and which would you choose?