Gross Profit Margin (USD $ in Millions) Source: Coca-Cola Co. Annual Reports Gross profit margin(2013) = 100 × 28‚433/46‚854 = 60.68% Gross profit margin(2012) = 100 x 28‚964/ 48‚017=60.32% Gross profit margin(2011) = 100 x 28‚326 = 60.86% Source: PepsiCo Inc. Annual Reports Gross profit margin (2013) = 100 x 35‚172/66‚415 = 52.96% Gross profit margin (2012) = 100 x 34‚201/65‚492 = 52.22% Gross profit margin (2011) = 100 x 34‚911/66‚504 = 52.49% Gross profit margin is a resource
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Retained earnings = $95‚000 – 42‚000 Retained earnings = $53‚000 So‚ the equity at the end of the year was: Ending equity = $230‚000 + 53‚000 Ending equity = $283‚000 The ROE based on the end of period equity is: ROE = $95‚000 / $283‚000 ROE = .3357 or 33.57% The plowback ratio is: Plowback ratio = Addition to retained earnings/NI Plowback ratio = $53‚000 / $95‚000 Plowback ratio = .5579 or 55.79% Using the equation
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ROI: is the rate of return on the investment on the idea/item which will generate a profit‚ making it attractive to investors. The average ROI for an orphan drug is 54%( https://www2.deloitte.com). The cost of Ornecia per patient‚ per year is $110‚000; which is on average of most orphan drug prices. In a market of less
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of the total $500M inside and outside sales of four division. For the sake of the high number of vehicles sold‚ top management’s goal was to target high expected growth in AM division. When looking into the company’s overall strategies and goals‚ ROI is an important indicator for their targeting‚ budgeting and planning. In order to make Abrams company’s own financial reports similar to external ones‚ it included the allocated overhead expenses and taxes in determining profit. In addition‚ Abrams
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Table of contents Introduction 2 ROI and EVA® as Performance measures and their effects on managerial behaviour 2 Conclusion 4 Transfer pricing 5 Market-based Transfer Pricing 5 Full Cost Transfer Pricing 6 Cost-plus a mark-up transfer Pricing 6 Negotiated Transfer Pricing 7 References 8 Bibliography 8 Introduction “Managing for value has become the mantra of today’s executives as the reality of competitive environments force businesses to focus on improving profitability
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Ratio Analysis 5. Liquidity (Cashflow/BS) 6. How is Disney doing compare to competitors ? 7. ROE and ROA (IS/BS) 8. Future Prospects 9. Pricing Strategy 10. Marketing Strategy I. Return on Investment Return on Equity (ROE): 2012 ROE=Net Income/Average Stockholders’ Equity ROE=6173/(41958+39453):2 ROE=0‚1516 Disney’s ROE=15% Disney generated a profit of 15 cents for every dollar in its average equity throughout
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1 EPS= $5.08 No. of shares= 300‚000 r=20% ROE=25% DPS=Total dividend/No. of shares=640000/300000=$2.13 Net income = EPS*No. of shares =5.08*300000 =1524000 g=Retention ratio*ROE =[1-(640000/1524000)*0.25 = (1-0.42)*0.25 =0.58*0.25=0.145=14.5% Po=D1/r-g =Do (1+g)/r-g =2.13(1+0.145)/0.20-0.145 =2.43885/0.055 = $44.34 Ans. 2 Industry growth rate g = Retention ratio*ROE = (1-0.41)*0.13 = 0.59*0
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48607 46061 Calculation done: Net Profit Margin 16.66% 20.54% 17.46% Asset Turnover 0.448 0.480 0.502 Equity Multiplier 1.855 1.711 1.789 DuPont Return on Equity 0.139 0.169 0.157 ROE‚ Competitors Qualcomm Inc. 20.34% 18.99% 18.22% ROE‚ Sector Telecommunications Equipment –% 17.68% 16.68% ROE‚ Industry Technology –% 23.13% 21.80% Results of DuPont Analysis for CISCO: The net profit margin is the after tax profit a company generates for each dollar of revenue. A
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Quiz 1- Spring 2013 Group 1 1. Which of the following concerning the relationship between risk and return is correct? A. Investors do not need to be compensated for taking on risk. B. Investors generally demand higher return for lower risk investments. C. Safer investments tend to have lower returns. D. Higher risk investments provide lower returns. E. Risk and return are not related. 2. Which of the following concerning the relationship between risk and return is correct? A. Risk
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Report on Capital Budgeting Abstract This report deals with • The nature of capital investment appraisal • The techniques available for evaluating capital investments • The limitations of these techniques • The capital budgeting practices in select countries Introduction: Some of the major responsibilities of top management are in the area of long range planning. Allocating resources to competing uses is one of the most important decisions a manager has to make. Executives are constantly
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