...Andrews Corporation | Performance Assessment & Competitive Strategy Evaluation | Practice Rounds | Table of Contents I. Performance Assessment 3 1. Marketing 3 1.1. Awareness and Accessibility 3 1.2. Product Attributes 4 1.3. Customer Survey Scores 5 2. Production / HR 6 2.1. Analysis 6 2.2. Productivity Improvements 8 3. Finance 9 4. Balanced Scorecard 9 II. Competitive Strategy Evaluation 11 1. Strategy and Competencies 11 2. Specific Decisions 12 3. Competitive Advantage 13 I. Performance Assessment (Desiree) 1. Marketing 1.1. Awareness and Accessibility Andrews’ marketing efforts can and should be improved in the formal simulation. We understand that in order to gain market share, we must ensure customers are aware of our products and can easily purchase them. We intend to invest more in marketing in the early rounds of the simulation to maximize awareness and accessibility in order to spend less in subsequent rounds to maintain adequate levels. We intend to achieve a minimum of 80% awareness by round 4 for all of our primary products, though we will likely continue on a similar course with regard to accessibility. Unfortunately, due to what we believe to be an unexplained glitch in the system, our awareness dollars seemed to be wasted on our new products. The primary evidence of this lies with Apex, a new product introduced in practice round 2. Apex started with 25% awareness as a new product in round 2. We invested...
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...Financial Analysis of Target & Walmart Corporation Columbia College ABSTRACT This paper is a brief background and historical overview as well as financial analysis of Walmart and Target public incorporated companies operating in the retail industry. The financial analysis of both companies using current ratio, net income margin on sales and book value per share reflect relative stable companies with strong balance sheet and low exposure to equity investment risk. Although both companies appear to be fundamentally strong and stable, however, Target seems to be better than Walmart in the context of profitability, liquidity and equity risk exposure as reflected in the calculations. Between 2009 and 2013, Target consistently outperformed Walmart in terms of liquidity position, profitability as well as risk coverage measured by book value per share. INTRODUCTION Walmart is a well-known in the industry when it comes to retail business across the globe. It operates many retail stores in various formats around globally. The company was founded by ”Sam Walton in 1962, incorporated on October 31, 1969, and started trading as public quoted company on the New York Stock Exchange in 1972, and it currently has 30% market share in the America retail industry” (Reuters). It is headquartered in Bentonville, Arkansas. Two of their fundamental operating principles are Everyday Low Cost (EDLC) and Everyday Low Price (EDLP). These two principles allowed the company to build a foundation...
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...The Impact of the Affordable Care Act on Businesses Sadie Boyd Webster University FINC 5000 Abstract This research paper was created to bring a better understanding on how the Patient Protection and Affordable Care Act affect business, government, and average American. Small business owners have historically had a much harder time providing themselves and their employees with insurance due to rising health insurance costs; meanwhile bigger businesses remain largely unaffected due to the leverage buying large group health plans gives them. This problem has only gotten more severe in the past decade. Today, almost half of America's uninsured are small business owners, employees or their dependents. There are around 44 million Americans who currently are unable to get health insurance. The Patient Protection and Affordable Care Act (PPACA,) signed into law by President Barack Obama on March 23, 2010. Several rationales were offered in support of this legislation, including that it would lead to the creation of jobs and the reduction of the federal budget deficit. Everyone is affected by this health care in one way or another. The Patient Protection and Affordable Care Act Consistent with respected economists‟ forecasts, the health care law contains a number of provisions that will eliminate jobs, reduce hours and wages, and limit future job creation. Specifically, the law: * Penalizes employers for failing to offer coverage deemed acceptable by the government; ...
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...Question #1: A “real option” is a choice that becomes available with a business investment opportunity. Real options can include opportunities to expand and cease projects if certain conditions arise. They are referred to as "real" because they usually pertain to tangible assets such as capital equipment, rather than financial instruments. Real options differ from financial options in that with financial options usually an underlying asset such as a stock is traded. Taking into account real options can greatly affect the valuation of potential investments. It does not obligate the owner to take any action, it just gives the right to buy or sell an asset. Examples of real options include developing new products expanding an existing product line, entry to a new geographical area as well as abandoning certain operations. There are several tools and techniques that are available for managers to analyze the profitability of a project. There is the discounted cash flows method which would ignore the option and calculate the net present value. There is a qualitative assessment that shows the value of the option increases is the project is risky or there is a long time that is needed to wait before exercising the option. The decision tree analysis is a tree like model that shows probable outcomes of the different decisions. Using the existing model for corresponding financial options, this resembles a financial call option. It is basically a call option with an expiration date ...
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...FINC 5000 Week 5 Homework Assignment Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-week-5-homework/ Chapter 9: For Week 5, please turn in the answers to the following questions: 1. What does it mean when people refer to a firm’s “cost of capital?” 2. What are the three components that normally make up a firm’s weighted average cost of capital (WACC)? 3. (calculating the after-tax cost of debt) Suppose your firm can borrow what it needs from a local bank at 4.5% interest. If your firm’s effective tax rate is 40%, what is its after-tax cost of debt? 4. (calculating the cost of preferred stock) Suppose your firm wants to finance a project, in part, with 4.0%, $100 par preferred stock which the firm’s investment bankers say can be sold for $60 a share. The investment bankers will charge your firm $1 a share to handle the stock issue. Given these conditions, what is your firm’s cost of preferred stock? 5. (calculating the cost of common stock, or common equity per the dividend growth model approach) Your firm’s common stock is selling for $37.00 a share and it paid a dividend last year to the common stockholders of $1.60. If the growth rate in earnings and dividends for your firm is estimated to be a constant 5% for the foreseeable future, what is your firm’s cost of common equity per the dividend growth model approach? 6. (cost of common stock, or common equity per the CAPM approach) After some research on the Internet, you...
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...FINC 5000 Homework Assignment for Week 6: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-6/ For Week 6, please turn in the answers to the following questions: 1. List the three steps that make up the general approach to capital budgeting. 2. Define an “Incremental cash flow” as the term is used in capital budgeting 3. Define the payback period method in capital budgeting and state the payback period decision rule. 4. What is the payback period of the following project? Initial Investment: $60,000 Projected life: 7 years Net cash flows each year: $14,000 5. Define the discounted payback period method in capital budgeting and state the payback period decision rule. 6. What is the discounted payback period of the project in Question 4, assuming your cost of capital is 7%? 7. Define the Net present Value (NPV) method in capital budgeting and state the NPV decision rule. In economic terms, what does the NPV amount represent? 8. Your firm is looking at a new investment opportunity, Project Z, with net cash flows as follows: ---- Net Cash Flows ---- Project Z Initial Cost at T-0 (Now) ($100,000) cash inflow at the end of year 1 50,000 cash inflow at the end of year 2 40,000 cash inflow at the end of year 3 30,000 Calculate project Z's Net Present Value (NPV), assuming your firm’s required rate of return...
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...FINC 5000 Homework Assignment for Week 6: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-6/ For Week 6, please turn in the answers to the following questions: 1. List the three steps that make up the general approach to capital budgeting. 2. Define an “Incremental cash flow” as the term is used in capital budgeting 3. Define the payback period method in capital budgeting and state the payback period decision rule. 4. What is the payback period of the following project? Initial Investment: $60,000 Projected life: 7 years Net cash flows each year: $14,000 5. Define the discounted payback period method in capital budgeting and state the payback period decision rule. 6. What is the discounted payback period of the project in Question 4, assuming your cost of capital is 7%? 7. Define the Net present Value (NPV) method in capital budgeting and state the NPV decision rule. In economic terms, what does the NPV amount represent? 8. Your firm is looking at a new investment opportunity, Project Z, with net cash flows as follows: ---- Net Cash Flows ---- Project Z Initial Cost at T-0 (Now) ($100,000) cash inflow at the end of year 1 50,000 cash inflow at the end of year 2 40,000 cash inflow at the end of year 3 30,000 Calculate project Z's Net Present Value (NPV), assuming your firm’s required rate of return...
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...FINC 5000 Week 5 Homework Assignment Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-week-5-homework/ Chapter 9: For Week 5, please turn in the answers to the following questions: 1. What does it mean when people refer to a firm’s “cost of capital?” 2. What are the three components that normally make up a firm’s weighted average cost of capital (WACC)? 3. (calculating the after-tax cost of debt) Suppose your firm can borrow what it needs from a local bank at 4.5% interest. If your firm’s effective tax rate is 40%, what is its after-tax cost of debt? 4. (calculating the cost of preferred stock) Suppose your firm wants to finance a project, in part, with 4.0%, $100 par preferred stock which the firm’s investment bankers say can be sold for $60 a share. The investment bankers will charge your firm $1 a share to handle the stock issue. Given these conditions, what is your firm’s cost of preferred stock? 5. (calculating the cost of common stock, or common equity per the dividend growth model approach) Your firm’s common stock is selling for $37.00 a share and it paid a dividend last year to the common stockholders of $1.60. If the growth rate in earnings and dividends for your firm is estimated to be a constant 5% for the foreseeable future, what is your firm’s cost of common equity per the dividend growth model approach? 6. (cost of common stock, or common equity per the CAPM approach) After some research on the Internet, you...
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...FINC 5000 Homework Assignment for Week 1 Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-1/ For Week 1, please turn in the answers to the following questions: Chapter 1: 1. Describe the field of finance. How is it different from the field of accounting? 2. What are the three forms of business generally encountered in the US? What are the main defining characteristics of each? 3. What should be the basic financial goal of a business? 4. In the context of a corporation seeking to maximize the wealth of its owners, how is “wealth” defined? 5. What are the three broad factors that influence the market price of a corporation’s stock? 6. Name three ways in which businesses can raise money from external sources when they need it for expansion or project funding. Chapter 2: 7. What is the purpose of a balance sheet? What are some examples of typical balance sheet accounts? 8. What is the purpose of an income statement? What are some examples of typical income statement accounts? 9. What is the purpose of a statement of cash flows? What are some examples of typical statement of cash flow accounts? 10. a. What are “Free Cash Flows (FCF)?” b. What is “NOPAT?” 11. What was Joe’s average, or effective tax rate in 2014? 12. What was Joe’s NOPAT in 2014? 13. What was Joe’s Free Cash Flow (FCF) in 2014? (Note: For this...
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...FINC 5000 Homework Assignment for Week 1 Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-1/ For Week 1, please turn in the answers to the following questions: Chapter 1: 1. Describe the field of finance. How is it different from the field of accounting? 2. What are the three forms of business generally encountered in the US? What are the main defining characteristics of each? 3. What should be the basic financial goal of a business? 4. In the context of a corporation seeking to maximize the wealth of its owners, how is “wealth” defined? 5. What are the three broad factors that influence the market price of a corporation’s stock? 6. Name three ways in which businesses can raise money from external sources when they need it for expansion or project funding. Chapter 2: 7. What is the purpose of a balance sheet? What are some examples of typical balance sheet accounts? 8. What is the purpose of an income statement? What are some examples of typical income statement accounts? 9. What is the purpose of a statement of cash flows? What are some examples of typical statement of cash flow accounts? 10. a. What are “Free Cash Flows (FCF)?” b. What is “NOPAT?” 11. What was Joe’s average, or effective tax rate in 2014? 12. What was Joe’s NOPAT in 2014? 13. What was Joe’s Free Cash Flow (FCF) in 2014? (Note: For this...
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...FINC 5000 Homework Assignment for Week 3: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-3/ Chapter 5: For Week 3, please turn in the answers to the following questions: 1. Define the following terms as they apply to bonds: a. Face value b. Maturity date c. Coupon interest (including coupon interest rate) d. Current yield e. Yield to maturity (YTM) f. Yield to call (YTC) g. Call premium 2. What are “Zero-coupon” bonds? 3. Suppose you see the following bond price quote in the newspaper: McDonalds 5.7% 2039……..122.733 What can you tell about this bond from reading the price quote? 4. (calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)? 5. (calculating the current yield of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its current yield? 6. (calculating the YTM of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its yield to maturity (YTM)? 7. (calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market...
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...FINC 5000 Final Exam Part B, Problems Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-final-exam-part-b-problems/ Directions: You may complete the exam in Excel or in Word. • If you choose to complete the exam in Excel, open the Excel program and create a new spreadsheet named final exam (your last name). Then answer the following questions on the spreadsheet. You may put each problem on a separate tab in the spreadsheet if you like. Save the file when you are finished, then submit the exam on the course website just as you would a normal homework assignment. • If you choose to complete the exam in Word, open the Word program and create a new document named final exam (your last name). Then answer the following questions on the document. Be sure to show your calculations. Save the file when you are finished, then submit the exam on the course website just as you would a normal homework assignment. Question 1: (Cost of Capital) 8 points Pine Tree Farms Corporation (PTFC) has a target capital structure of 20% debt, 10% preferred stock, and 70% common equity. Currently PTFC has a capital structure of 70% debt, 10% preferred stock, and 80% common stock. The after tax cost of debt is 4.5%. The preferred stock has a par value of $100 per share, a $5 per share dividend, and a market price of $70 per share. The common stock of PTFC trades at $97 per share and has a projected dividend (D1) of $2.60. The stock price and dividend are...
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...FINC 5000 Homework Assignment for Week 3: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-3/ Chapter 5: For Week 3, please turn in the answers to the following questions: 1. Define the following terms as they apply to bonds: a. Face value b. Maturity date c. Coupon interest (including coupon interest rate) d. Current yield e. Yield to maturity (YTM) f. Yield to call (YTC) g. Call premium 2. What are “Zero-coupon” bonds? 3. Suppose you see the following bond price quote in the newspaper: McDonalds 5.7% 2039……..122.733 What can you tell about this bond from reading the price quote? 4. (calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)? 5. (calculating the current yield of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its current yield? 6. (calculating the YTM of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its yield to maturity (YTM)? 7. (calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market...
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...FINC 5000 Final Exam Part B, Problems Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-final-exam-part-b-problems/ Directions: You may complete the exam in Excel or in Word. • If you choose to complete the exam in Excel, open the Excel program and create a new spreadsheet named final exam (your last name). Then answer the following questions on the spreadsheet. You may put each problem on a separate tab in the spreadsheet if you like. Save the file when you are finished, then submit the exam on the course website just as you would a normal homework assignment. • If you choose to complete the exam in Word, open the Word program and create a new document named final exam (your last name). Then answer the following questions on the document. Be sure to show your calculations. Save the file when you are finished, then submit the exam on the course website just as you would a normal homework assignment. Question 1: (Cost of Capital) 8 points Pine Tree Farms Corporation (PTFC) has a target capital structure of 20% debt, 10% preferred stock, and 70% common equity. Currently PTFC has a capital structure of 70% debt, 10% preferred stock, and 80% common stock. The after tax cost of debt is 4.5%. The preferred stock has a par value of $100 per share, a $5 per share dividend, and a market price of $70 per share. The common stock of PTFC trades at $97 per share and has a projected dividend (D1) of $2.60. The stock price and dividend are...
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...Current Assets: Cash Accounts Rec. Inventory Total CA Fixed Assets: Net Fixed Assets Total Assets Liabilities & Equity: Current Liabilities: 12.5% Accts. Payable 21.9% Notes Payable Total CL 24.2% 58.6% Long‐term Debt: Common Stock 41.4% Retained Earnings 100.0% Total Liab. & S.E. $ 80 140 155 $375 265 $640 $ 95 110 $205 120 40 275 $640 14.8% 17.2% 32.0% 18.8% 6.2% 43.0% 100.0% 41 FINC 3610 ‐ Yost Financial Statement Analysis Suzie Q Corporation Income Statement For Year Ended December 31, 2011 Sales Cost of Goods Sold SG&A Expenses Depreciation EBIT Interest Expense EBT Taxes Net Income $910 470 210 60 $170 40 $130 52 $78 100.0% 51.6% 23.1% 6.6% 18.7% 4.4% 14.3% 5.7% 8.6% 42 Classification of Financial Ratios • • Short‐term Solvency or Liquidity Ratios Long‐term Solvency or Financial Leverage Ratios Asset Management or Turnover Ratios Profitability Ratios Market Value Ratios 43 • • • Short‐term Solvency (Liquidity) Ratios • Current Ratio • Quick (Acid‐Test) Ratio • Cash Ratio • Net Working Capital to Total Assets • Interval Measure 44 FINC 3610 ‐ Yost Financial Statement Analysis Long‐term Solvency (Financial Leverage) Ratios • Total Debt Ratio • Debt‐equity Ratio • Equity Multiplier • Long‐term Debt Ratio • Times Interest Earned (TIE) Ratio • Cash Coverage Ratio 45 Asset Management (Turnover) Ratios • Inventory Turnover and Days’ Sales in Inventory • Receivables Turnover and Days’ Sales in Receivables • Net Working Capital Turnover...
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