Dora Co, a listed company, manufactures parts and medical equipment for hospital industry. In 2011, new chief executive officer (CEO) took over of...

Dora Co, a listed company, manufactures parts and medical equipment for hospital industry. In 2011, new chief executive officer (CEO) took over of running of the company. The CEO was very impressed with growth in the financial performance. In particular, he stated that increase in share prices over the three years will significantly increase the shareholder wealth, suggesting that Dora Co has been a successful company. In addition to that the CEO expressed a desire to make the company a leading manufacturer of parts and equipments for hospital industry via the acquisition of a major rival manufacturer in 2015, and financing the acquisition through issuance of debts.

Given below are extracts from key information for both Dora and the industry over the three recent years.