Kohl’s Corporation and Dillard’s Inc.— Financial Statement Analysis Teaching notes: This case uses the multiplicative version of the DuPont model to analyze operations at two retail companies. Both companies have very straightforward financial statements and most students are familiar with the companies. The analysis can be as simple or as multi-faceted as instructors choose. The case begins with the qualitative side of financial statement analysis. The questions here are unstructured so
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Walgreens CO. | EVALUATION OF WALGREENS CO. | Managerial finance project | | Contents Walgreens CEO 1 The board of directors 2 How much trading volume is there on the stock? 4 Does the firm has any has publicly traded debt? 4 Societal constraint 4 Liquidity ratios 4 Overall risk of company 8 Marginal investors in the company 9 Estimate the default risk and cost of debt of your company 9 Weights of debt and equity 10 Regression 10 WACC and CAPM 11 Evaluating
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Executive Summary IBM and Accenture are both huge companies and uses five factor DuPont analysis to achieve a return on equity. IBM has a higher return on equity than Accenture‚ and therefore the management are more efficient in generating shareholder value per dollar invested. However both the companies are performing better than the industry average. IBM does also take lesser number of days to convert cash on hand compared to Accenture and industry average. But‚ Accenture is taking more days
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structure is the capital structure at which the market value is maximised and the cost of capital is minimised. There are 3 alternative capital structures from pro forma 2011 financial information. If Hill take 60% debt to capital ratio‚ the company repurchases the most of the shares comparing
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Chapter 2 Introduction to Financial Statement Analysis 2-1. What are the four main financial statements? What checks are there on the accuracy of these statements? The four financial statements are: the balance sheet‚ the income statement‚ the statement of cash flows‚ and the statement of changes in shareholders’ equity. Financial are required to be audited by a neutral third party‚ who checks and ensures that the financial statements are prepared according to GAAP or accounting standards
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Liquidity Measures 7 Current Ratio/Acid Test (Quick) Ratios 7 Financial Leverage Measures 8 Leverage ratio/ debt ratio/ debt to equity ratio 9 Investment Returns Measures 9 Return on Investment (ROI) 10 Return on Equity (ROE) 10 Management Efficiency Measures 10 Asset Turnover 10 Inventory Turnover 11 Conclusion 13 References 14 Executive Summary As one of the most recognizable brands worldwide‚ Starbucks is considered a monumental success story and
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------------------------------------------------- FI 627: Corporate Finance: Applications and advanced topics ------------------------------------------------- Study questions for case studies: Spring 2013 Week 1: Sears‚ Roebuck & Co. vs. Wal-Mart Stores‚ Inc. 1. How do the retailing strategies of Sears and Wal-Mart differ? 2. Wal-Mart’s average return on equity for the 1997 fiscal year was 19.7% while Sears’ average return on equity over roughly the same period was
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Plans L and H 4 Figure 2: Operating probability under Plan L and H 5 Figure 3: Expected ROIC under plan L 5 Figure 4: Expected ROIC under plan H 6 Figure 5: Expected EBIT‚ NOPAT and future Cash Flows 7 Figure 6: Effects of the Financial Leverage on ROE 8 Figure 7: WACC and TIE Calculations 9 Figure 8: EPS and Stoke Price 10 Figure 9: Optimal Capital Structure 12 Conclusion 12 Case Study Data Tables 13 Table 1. Financial Statement and Other Data on Router and PNC 13 Table 2a. Operating Leverage Input
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formulating a dividend policy. G O A L S LG4 Review and evaluate the three basic types of dividend policies. LG5 Evaluate stock dividends from accounting‚ shareholder‚ and company points of view. LG6 Explain stock splits and stock repurchases and the firm’s motivation for undertaking each of them. Across the Disciplines WHY THIS CHAPTER MATTERS TO YO U Accounting: You need to understand the types of dividends and payment procedures for them because you will need to record and
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Harley Davidson‚ Inc. Company Overview In 1903 the first Harley Davidson motorcycle was built by William S. Harley and Arthur Davidson (Harley‚ 2013). Harley Davidson motorcycles started out as racing bikes‚ being known not only their fast but also reliable motor (Harley‚ 2013). The company quickly grew and Harley Davidson motorcycles become an American icon. Harley Davidson Inc. became incorporated in 1981 (Harley‚ 2013). Five years later Harley Davidson became a publicly traded company
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