...Abstract In this assignment, I assumed that I savvy financial analyst researching Comcast Corporation. First, I research and provided a company overview. Secondly, I collected financial statement for the past 3 years and they are provided in the attached appendix. I also evaluated the company’s vulnerability, such as threats and global competition. Next, I reviewed the financial trends of the company, and predicted how these trends will impact financial performance in future periods. Finally, I gave the performance of the stock in the periods presented on the company’s financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance. Introduction Comcast Cable continues to drive innovation, increase new product introductions, transformed the customer experience, and has successfully integrated NBC Universal. Comcast derives the bulk of its revenue from television, Internet, and digital phone services offered in 39 states and the District of Columbia. Company Overview Comcast Corporation (NASDAQ: CMCSA, CMCSK) is one of the world's leading media, entertainment and communications companies. Comcast is principally involved in the operation of cable systems through Comcast Cable and in the development, production and distribution of entertainment, news, sports and other content for global audiences through NBC Universal...
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...Dennis Suler FIN 534 Assignment Set #1 1. What is the Free Cash Flow for 2014? Free Cash Flow = NOPAT – Net Investment In Operating Capital To find NOPAT = EBIT * (1 – Tax Rate) = 502,640 * (1-.4) = 502,640 *.6 = 301,584 So, FCF = 301,584 – Net Investment in Operating Capital 2014 Net Operating Working Capital= Operating current assets – Operating Current Liabilities = (Cash+Accounts receivable+Inventories) – (Accounts payable + accruals) = (14000+878000+1716480)- (359800+380000) =2,608,480 – 739,800 = 1,868,680 2013 NOWC was NOWC = (7282+632160+1287360)-(324000+284960) = 1926802-608960 =1,317,842 Net Investment in Operating Capital is 1868680 – 1317842 = 550,838 So, FCF = 301,584 – 550,838 = -249,254 2. Suppose Congress Changed the tax laws so that Berndt’s depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and net cash flow? If depreciation doubled, reported profit shrinks by 120,000 for 2014 (253,584 – 120,000) to 138,584 in 2014. Net cash flow would actually increase by $120,000, so it would be $498,584 3. Calculate the2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? Current ratio = current assets/current liabilities Current ratio= 2680112/1039800 = 2.577 = 2.6 Quick ratio= (current assets – inventory)/current liabilities = (2680112-1716480)/1039800 = 963632/1039800 =...
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...FIN 534 – Financial Management (Prerequisite: ACC 557 or ACC 560) COURSE DESCRIPTION Introduces the concepts of finance. Reviews the basic tools and their use for making financial decisions. Explains how to measure and compare risks across investment opportunities. Analyzes how the firm chooses the set of securities it will issue to raise capital from investors as well as how the firm’s capital structure is formed. Examines how the choice of capital structure affects the value of the firm. Presents valuation and integrate risk, return and the firm’s choice of capital structure. INSTRUCTIONAL MATERIALS Required Resources Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management (14th ed.). Mason, OH: South-Western Cengage Learning. (Note: This is a textbook uniquely created for Strayer and can only be purchased through the Strayer Bookstore. The contents of the book differ from the national title.) Tabbush, V. C., Trueman, B., Levine, D. Opler, T., Brandwein, A. C., Hanna, M. D., & Baran, R. J. (2011). MBA primer: Finance 3.0 instructor-led printed access card (3rd ed.). Mason, OH: Cengage Learning. Supplemental Resources CNN Money. (2013). General format. Retrieved from http://money.cnn.com/ Criniti, A. (2013). The necessity of finance. Philadelphia, PA: Criniti Publishing Company. Fidelity Investments, Inc. SWOT analysis. (2013). Fidelity Investments, Inc. SWOT Analysis, 1-8. Hasseltoft, H. (2012). Stocks, bonds, and long-run consumption risks. Journal of Financial & Quantitative...
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...Long-Term and Short-Term Financing Long-Term and Short-Term Financing There will come a time when the company will want to make improvements for the company, during this time the company will need more funding for new equipment, enhanced cash flow, new technology, and any other company expansion they want or ay need. It is normal for any business to have debts once in a while just to support the rest of their business operations. For this, the company may choose between long-term financing and short-term financing. They should determine the company’s needs and understand the difference between the two options before determining which of these options is most advantageous for the company. The best option for financing needs that last a year or less is short-term financing. Short-term financing will provide the company with enough capital needed. Promissory noted, short-term loans, inventory loans, over drafting, and letter of credits are part of short-term financing. Short-term loan will help the business by boosting the inventory orders, daily supplies of the company, and wage distribution aside from raising capital. Signing a short-term loan which is payable for six months is the best example of how short-term financing works. Thinking about it positively, he can use the profit from their sales to pay this loan. If the company is confident in paying the loan back on the due date they should use such loan. (Thompson, 2001) For a company that needs financing...
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...Midland Energy/Sample 2 Midland Energy Resources, Inc. Midland Energy Resources, Inc. is a global energy company that operates in oil and gas exploration and production (E&P), refining and marketing (R&M), and petrochemicals. Midland’s most profitable segment is its E&P division which produces 67% of the company’s net income (Exhibit 3). Its largest division is R&M with the Petrochemical division being the smallest. The primary goals of Midland’s financial strategy are to fund substantial overseas growth, invest in value-creating projects, achieve an optimal capital structure, and repurchase undervalued shares. To accomplish these goals, Midland must calculate an appropriate cost of capital that will allow reasonable valuations of their strategies. In funding overseas growth, Midland must use its cost of capital to analyze, evaluate, and convert foreign cash flows. In evaluating value-adding projects, the cost of capital must be used to discount project cash flows. To optimize its capital structure, the company must continuously evaluate its ideal borrowing based on its inherent cost. Lastly, when deciding when and how to repurchase shares, Midland’s management has to determine the intrinsic value of its shares. This requires determining the value of the company using DCF techniques and an appropriate discount rate. Cost of Capital Estimates of Midland’s cost of capital are used in analyses within the company and its three divisions. These analyses include...
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...Midland Energy/Sample 2 Midland Energy Resources, Inc. Midland Energy Resources, Inc. is a global energy company that operates in oil and gas exploration and production (E&P), refining and marketing (R&M), and petrochemicals. Midland’s most profitable segment is its E&P division which produces 67% of the company’s net income (Exhibit 3). Its largest division is R&M with the Petrochemical division being the smallest. The primary goals of Midland’s financial strategy are to fund substantial overseas growth, invest in value-creating projects, achieve an optimal capital structure, and repurchase undervalued shares. To accomplish these goals, Midland must calculate an appropriate cost of capital that will allow reasonable valuations of their strategies. In funding overseas growth, Midland must use its cost of capital to analyze, evaluate, and convert foreign cash flows. In evaluating value-adding projects, the cost of capital must be used to discount project cash flows. To optimize its capital structure, the company must continuously evaluate its ideal borrowing based on its inherent cost. Lastly, when deciding when and how to repurchase shares, Midland’s management has to determine the intrinsic value of its shares. This requires determining the value of the company using DCF techniques and an appropriate discount rate. Cost of Capital Estimates of Midland’s cost of capital are used in analyses within the company and its three divisions. These analyses include asset appraisals...
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...1 Week 4 Learning Team Exercises Rashonna Web and Crystal McQueen ACC/543 Sandria Stephenson December 7, 2014 2 26.1)Mechanic's Lien. Ironwood Exploration, Inc. (Ironwood) owned a lease on oil and gas property located in Duchesne County, Utah. Ironwood contracted to have Lantz Drilling and Exploration Company, Inc. (Lantz), drill an oil well on the property. Therafter, Lantz rented equipment from Graco Fishing and Rental Tools, Inc. (Graco), for use in drilling the well. Graco billed Lantz for these rentals, but Lantz did not pay. Graco filed a notice of mechanic's lien on the well in the amount of $19,766. Ironwood, which had paid Lantz, refused to pay Graco. Graco sued to forclose on its mechanic's lien. Who wins? Graco Fising and Rental Tools, Inc. v. Ironwood Exploration, Inc., P.2d 1074, 98 Utah Adv. Rep. 28. Web 1998 Utal Lexis 125 (Supreme Court of Utah) 26.2)Foreclosure Atlantic Ocean Kampgrounds, Inc. (Atlantic) borrowed $60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount. Maine permits strict foreclosure. Atlantic defaulted on the loan, and Camden commenced strict foreclosure proceedings pursuant to state law. After the one-year period of redemption, Camden National sold the property to a third party in an amount in excess of the mortgage and costs of the foreclosure proceeding. Atlantic sued to recover the surplus from Camden National. Who wins...
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...INVESTING IN APPLE INCORPORATION FIN 534-Financial Management 3 March 2015 Abstract In my paper, I will provide the rationale for selecting Apple Incorporation for which to invest. I will also determine the profile of the investor for which this company may fit. I will then use five financial ratios to analyze the past three years of the company’s financial data. Based on my review I will determine the risk level of the company indicating key strategies they may use in order to minimize the perceived risk. Finally, I will provide my recommendations of Apple Incorporation as a potential investment opportunity. Investing in Apple Incorporation Rationale for Investment Consideration of several factors is imperative while making investment decisions. An investor should evaluate the company’s growth potential before channeling their funds for investment (Brigham & Houston, 2011). Apple is renowned for its leadership in innovations. The company has revolutionized the technology industry through a remarkable change. The introduction of iPhones and the evolvement of the iPhones to the latest iPhone 6 and six plus is incredible. Innovation continues to take a lead in Apple Inc. With the introduction of Apple watch and Apple apps, there is a positive outlook for Apple stock for potential investors. The company has invested in a vertical acquisition to spur growth. For instance, Apple acquired Beats Electronics, which has gone a long way...
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...FINANCIAL RESEARCH REPORT WEEK 9 Jonathan Jackson Dr. Daniel Terfassa 9/11/2015 FIN 534 Introduction Southwest Airlines was founded in 1971 by Herb Kelleher and Rolling king. The company started its services for San Antonio, Dallas and Houston. In the mid-1980s, the company was first to offer the frequent miles program. This program allowed travelers to bank traveled air miles to be used latter credit for a reduced airfare or free ticket. It was the first airline company to offer senior discounts, fun packs and fun fans. From 1981 to 1984, the company continuously received the top ranking of number 1. By 1998 Southwest Airlines had become 5th largest US air carrier, caring more than 50 million passengers per year servicing the Southwest and Northwest and other primary locations all across the United States. In 1987, the company took over TranStar Airlines and Morris Air in 1994. This gave Southwest Airlines a stronger edge in the market. Originally the company was incorporated for serving three cities in Texas as Air Southwest on March 15, 1967, by Herb Kelleher and Rollin King. The airline experienced a great history of success, it adopted the first profit sharing plan in the US airline industry 1971. Employees own almost 10% of the company stock through this plan and others as well the company is almost 87 percent unionized. The pilots are represented by the pilot association of Southwest Airlines which is a union separate from the much larger Air Line Pilots...
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...Assignment 1: Financial Research Report Anthony Wilkins Fin 534 August 30, 2015 Introduction Toyota Motor Corporation is one of the most important automaker that has been operational since 1973, based in Japan. The company has gone global and their operations are massive such that it trades in the New York Stock Exchange (NYSE). The company started as a department of the human resources that used to employ 317,734, before it become the biggest automobile due to the huge production that it used to make from the huge labour. It was until the operations were now very stable that the automaker became globally known and being the largest conglomerate in the world. Toyota was able to attain a high number of customers who were impressed with automobiles made by the company (Srivastava, 2009). Some of the products that are produced by the company are inclusive of; mini vehicles like vans and trucks, auto parts, commercial vehicles and passenger vehicles. There are other vehicle that are sold by the company under the Lexus brand name and they include the luxury sporty vehicles and crown majesta, all liked by many people in the United States. The company currently sells limousine in most parts of the world together with Scion tC, a type of a sporty car that is used in sports. Rationale for the company I as a financial manager, I had to consider some factor before taking part of investing in this company. I considered many factors that included its financial statements...
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...Jezreel Spencer 3/5/2014 Financial management 534 Dr. Sinan Yildirim Financial Research Report Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager. The stock chosen for this report is Wells Fargo & Company (WFC). There are several reasons to recommend this stock to investors the most important being that the entire banking industry has been making a strong return to its pre-recession levels. Banks balance sheets are healthier than they have ever been due to recession as well, which in turn can return investors who may have shied away since the recession. Another major factor when investing in Wells Fargo is the fact that the dividends the company is paying as of March, 1 of 2015, are at 35 cents per share. That is a dramatic 700% gain since the company hit all-time lows of 5 cents during 2011. In stark comparison two of the other “big four” American banks, Bank Of America and Citigroup have yet to show any real improvement over the same time frame with 5 cent and 1 cent dividend payouts respectively. Wells Fargo has the largest market cap of all American banks, and is listed as number 29 in the fortune 100 as well with over 1.5 trillion dollars in assets (Borzyowski, 2014). As stated earlier the entire banking industry is making headway, but there is a difference in the entire Wells Fargo business model. For starters the company has built its capital off of providing...
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...A B. Finance Specialization Requirements (12 semester hours): Term Two (spring) | | | IMB 531 Portfolio Analysis and Management I: Equity | (2) | | IMB 532 Portfolio Analysis and Management II: Fixed Income | (2) | | IMB 533 Portfolio Analysis and Management III: Derivatives and Financial Risk Management | (2) | | IMB 536 Global Macroeconomic Trends and Financial Institutions or CSB Elective | (1) | | IMB 534 International Real Estate Investment | (1) | | IMB 539 Financial Management | (2) | | IMB --- CSB Elective | (2) | | Or | | | | | | IMB 595 Special Topics in International Business (to be completed at an IBSA partner school) | | C. Thesis or Extensive Written Case Analysis (12 semester hours): Term 3 (summer) | | | IMB 599 Thesis | (6) | | IMB 594 Capstone Project / Practicum | (6) | IMBA Course Descriptions (UNCW) The course descriptions shown below are only for courses offered by UNCW and the Cameron School of Business. See each alliance school for their course offerings. IMB 531. Cases in International Finance (1-2) This course will focus on international financial management cases. Cases will build on topics of international monetary systems, international investment decisions, portfolio diversifications, multinational capital structure, and foreign exchange risk and management. IMB 532. Portfolio Analysis and Management I (2) This course is designed to focus on tool and techniques of modern portfolio theory...
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...Table of Contents WELCOME FROM ACADEMIC PROGRAM DIRECTOR ............................................................................ 1 MEET THE FACULTY................................................................................................................................... 2 ORIENTATION SCHEDULE ....................................................................................................................... 10 ACADEMIC CALENDAR ............................................................................................................................. 11 MASTER OF SCIENCE IN FINANCE PROGRAM SUMMARY ................................................................. 12 GETTING STARTED .................................................................................................................................. 13 JHED ID .................................................................................................................................................. 13 Blackboard FAQs .................................................................................................................................... 13 Integrated Student Information System (ISIS) ........................................................................................ 14 LIFE AT THE CAREY BUSINESS SCHOOL .............................................................................................. 15 HEALTH INSURANCE FOR STUDENTS...........................................
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...RISK MANAGEMENT IN ISLAMIC BANKING AND FINANCE: THE ARAB FINANCE HOUSE EXAMPLE Bilal A. Fleifel A Thesis Submitted to the University of North Carolina Wilmington in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration Cameron School of Business University of North Carolina Wilmington 2009 Approved By Advisory Committee Howard Rasheed Cetin Ciner William H. Sackley Chair Accepted By DN: cn=Robert D. Roer, o=UNCW, ou=Dean of the Graduate School & Research, email=roer@uncw. edu, c=US Date: 2010.01.21 15:02:51 -05'00' ________________________ Dean, Graduate School TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... ii ABSTRACT........................................................................................................................ vi ACKNOWLEDGMENTS .................................................................................................. vii DEDICATION .................................................................................................................. viii LIST OF TABLES .............................................................................................................. ix LIST OF FIGURES...............................................................................................................x GLOSSARY .............................
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...Reynolds FIN 534 Financial Management Strayer University December 1, 2010 Introduction “Ask the head honchos of successful franchise system about their growth philosophies, and their answers will reflect the unique needs of their individual companies. But listen carefully, and you will hear two recurring words: "money" and "infrastructure”. It takes money to create a solid infrastructure that adequately supports a franchise system's operations. Without that infrastructure, you won't make money (Larson, 2001).” A successful company continuously thinks of ways to promote their firm and products. When a company needs to raise additional cash to undertake new projects, management has to determine what type of safety measures to take to finance its investment. Capital structuring is “when corporations raise funds from outside investors, they must choose which type of security to issue. The most common choices are financing through equity alone or financing through a combination of debt and equity (Berk & DeMarzo, 2011, p. 451).” In this paper, we will be taking a look at this company who will need $27,000,000.00 to finance a major project in the company. The company is expected to generate a total of $25,780,000.00 in earnings next year with addition to the new project. The company currently has 5 million shares outstanding, with price of $19.25 per share. We will take look at the figures and determine should the company issue stocks or issue debts to finance the new project...
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