You are the head of the strategic management department of a company that manufactures
steel. You are in the process of updating the company's strategic growth plan. The level of
competition in the industry has increased significantly and you expect the trend to continue. Your
company must take into account the effect of the increased competition on its performance.
Aluminium, Copper, Iron, Lead, and Mercury are other companies in the steel industry. Use the
following information from these companies to assist you in making a presentation to the board.
Cost of equity (Re)
Excerpt from income statement
Excerpt from balance sheet
Based on this information, answer the following questions in the corresponding answer tabs
Use the following metrics to calculate the performance of the steel industry:
Return on equity
Calculate the median ROE for the steel industry and assess the level of competition compared
to the automotive industry, whose median is 9%.
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