– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.
P0= D1/ Dividend yield= $26.67 P7= P0 *(1+11%)^7= $ 55.36 15. Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock’s current market value?
Husky used annual observations from 20 prior years to estimate each of the four equations. Following are a definition of the variables used in the four equations and a statistical summary of these equations: St = Forecasted sales in dollars for Lockit in period t St–1 = Actual sales in dollars for Lockit in period t – 1 Gt = Forecasted U.S. gross domestic product in period t Gt–1 = Actual U.S. gross domestic product in period t – 1 Nt–1 = Lockit’s net income in period t – 1 Required: 1. Write Equations 2 and 4 in the form Y = a + bx. 2. If actual sales are $1,500,000 in 2009, what would be the forecasted sales for Lockit in 2010?
What is the amount of its credit carryover and the last year to which the carryover could be used? Answer: $7,750 carried over to 2004 or 2025 4. Margolin Corporation has a regular taxable income of $120,000. It has a positive adjustment of $90,000, preference items of $50,000 and negative adjustments of $40,000. What is its alternative minimum tax?
The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013). While the amount of growth is substantial when standing alone, it was modest when comparing the 2010 and 2011 reporting periods. That time frame saw a 34.80% growth which equaled $10.60B (ExxonMobil Corporation, 2012). When considering ExxonMobil’s cash flow, one finds that cash flow for 2012 was a negative $3.08B. The company’s cash and cash equivalents started the year with $12.66B and ended with $9.58B, a 24.83% drop during the year.
Based on this estimate, should Vodafone shareholders support the deal? What fraction of the synergies is appropriated by Vodafone shareholders and what fraction by Mannesmann shareholders? What is the present value of the expected synergies as shown in Exhibit 10? (Assume that the synergies related to revenues and costs grow at 4% annually past 2006, that savings from capital expenditures do not extend beyond 2006, and that the merger will not affect the firm’s level of working capital.) Use the average exchange rate of EUR/GBP=1.5789, and the Goldman Sachs WACC.
c. Internal common equity where the current market price of the common stock is $43.50. The expected dividend this coming year should be $3.25, increasing thereafter at a 7% annual growth rate. The corporation’s tax rate is 34%. d. A preferred stock paying a 10% dividend on a $125 par value. If a new issue is offered, flotation costs will be 12% of the current price of $150.
* Market share today: Out of 2,000 big companies Wal-Mart is at 17 with 201.36 billion in market value and in its industry of retail, Wal-Mart is ranked #1 with Home Depot and Target behind. * Profitability of the company compared to the past: Last year Wal-Mart closed with their net sales at $344.992 billion and as Wal-Mart finishes their third quarter their net sales is at $269.8 billion, this is a positive for them and an 8.6% increase on sales. B. Strategic Posture 1. Mission * The company’s current mission objective is to give their customers what they want.
Today, PPG operates in more than seventy countries around the world. (About PPG, 2013) As of the third quarter 2013, PPG reported their net sales of $4 billion, which was up 17% from the previous year (2112). Their adjusted earnings per share were record breaking at $2.44 per share, up 31% over last year with the recent recovery in the economy. Cash and short-term investments were $2.2 billion at the end of the third quarter. PPG anticipated its full-year share repurchases to be at the high end of what they had originally projected.
(Weber, 2012) In deciding whether LinkedIn is a good investment or not, comparable companies in the industry was used: 1) Dice Holdings, the leading recruiting and career development website for technology and engineering professionals in the United States. 2) 51job the leading recruitment website in China and, 3) Facebook the largest social media company in the world today. These were the three companies used for the analysis. For year-end 2012, Dice Holdings generated over $179 million in revenue and over $38 million in net income, 51job generated over $167 million in revenue and over $75 million in net income, and Facebook generated over $5 billion in revenue and over $32 million in net income. LinkedIn generated over $970 million in revenue and over $21 million in net income that same year.