Literature review The essence of financial management is the creation of shareholder value. According to Ehrhard and Bringham (2003), the value of a business based on the going concern expectation is the present value of all the expected future cash flows to be generated by the assets, discounted at the company’s weighted average cost of capital (WACC). From this it can be seen that the WACC has a direct impact on the value of a business. (Johannes and Dhanraj, 2007). The choice between debt
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a 40% increase in sales and 89% on net income. The objective of the paper is whether the management should recommend pushing through with the planned expansion of the chicken business as well as the feeds business. After having analyzed the financial ratios and SWOT of the company, it has been decided that it is better for the company not to push through with the expansion. Despite the promising increase in sales and net income, its inventory has been problematic as it showed an inverse relationship
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Risk Analysis Debt to equity is a measure of a company’s financial leverage. It indicates what proportion of equity and debt the company is using to finance its assets. From 2010 to 2012, the total debt/equity ratios of Merck & Co. went from 0.33 to 0.32 and 0.39. Although the ratio didn’t change dramatically from 2010 to 2011, it did increase incredibly during year 2012. It shows that Merck & Co. had been aggressive in financing its growth with debt. The increasing debt/equity ratio means
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to become one of the most successful companies in the United States. Customers and Wall Street simply could not get enough of the KKD brand and the company experienced significant growth and financial success from 2000 to 2003. The sudden downfall of KKD began when the company first announced adverse financial results in May of 2004. In July of 2004, the U.S. Securities and Exchange Commission announced they were launching an informal investigation into the company’s accounting practices. Both of
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Ethical and Professional Standards The candidate should be able to demonstrate a thorough knowledge of the CFA Institute Code of Ethics and Standards of Professional Conduct, familiarity with the Global Investment Performance Standards, and familiarity with corporate governance issues and risks affecting companies. Study Session 1 Ethical and Professional Standards Reading Assignments 1.* “Code of Ethics and Standards of Professional Conduct” Standards of Practice Handbook, 9th edition
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value investors. • We believe ANF will continue to grow due to the overall structure of the industry. As teen spending continues to grow in proportion to the population, we believe there will be consolidation in the specialty retailers to leverage operations and brand recognition. Based upon the cash position of ANF, we expect ANF to be an acquirer of companies. • ANF has demonstrated the ability to successfully execute on its key critical success factors, including inventory management
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18. Gross margin GROSS MARGIN PT INDOFOOD SUKSES MAKMUR Tbk * 2009 Laba Kotor Penjualan ×100 % = 10.441.609 37.397.319 ×100 % = 27,92 % * 2010 Laba Kotor Penjualan ×100 % = 12.470.452 38.403.360 ×100 % = 32,47 % GROSS MARGIN PT SIANTAR TOP Tbk * 2009 Laba Kotor Penjualan ×100 % = 102.064.505.889 627.114.839.010 ×100 % = 16,27 % * 2010 Laba Kotor Penjualan ×100 % = 132.930.747.563 762.612.830.093 ×100 % =17,43 % 19. Return on assets RETURN ON ASSETS PT INDOFOOD SUKSES
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Coca-Cola Financial Ratio 2006 2006 ($) 2005 ($) Liquidity ratio 1) Net Working capital = Current Asset- Current Liabilities 8441000- 8890000 = (449000) 10250000-9836000 = 414000 2) Current ratio = Current Assets Current Liabilities = 8441000 8890000 = 0.95 = 10250000 9836000 = 1.04 3) Quick ratio = Current Assets- Inventories Current Liabilities = 8441000- 1641000 8890000 = 0.76 = 10250000-1424000
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AINSWORTH GAME TECHNOLOGY Business Analysis and Valuation Report Prepared By: Kai.Zhang(42690157) Version # 1.4 Updated on 25/10/2011 10 PM ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail
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retail services and petrochemical products. The company operates in two segments: Exploration & Production and Refining & Marketing. 3. Chevron: Chevron Corporation manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries the engage in petroleum operations, chemical operation, mining operations, power generation and energy services. 4. ConocoPhillips: ConocoPhillips is an international
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