My company is General Dynamics Corporation (GD) Evaluate other areas of financial analysis: capital spending, Beta...

My company is General Dynamics Corporation (GD)

Evaluate other areas of financial analysis: capital spending, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. (10% of the project grade)

1) Find the data for capital spending. How much did THE COMPANY spend on research, development, and engineering in the most recent year? How did this compare with the previous year?

2) Find the current beta for the company and its major competitor in the Internet. Find credit rating service valuations (if possible), bond rating valuations (if possible). Compare the beta values against the main competitor. In your report please answer the question: How risky the company is?

Solutions

Expert Solution

Ans:

A) There are no Data available regarding Capital Spendings of General Dynamics Corp. in public domain. but you can get it by purchasing it from different sources available on the internet.

b) Current Beta of General Dynamics and its major competitors are listed below along with there comparison.

it will be difficult to make any comment on how risky the company is without any detailed analysis of the company financials. but just bye seeing the Beta we can draw an opinion that it's less volatile to Indices ( Market). as Beta only indicates the volatility of a stock.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

My company is General Dynamics Corporation and I need to get information on a competitor. Find...

My company is General Dynamics Corporation and I need to get information on a competitor. Find financial ratios for the company for the last 1-3 years and its major competitor General Dynamics Corporation (GD) for the last year in the Internet. a. Present the ratios as the table(s) in your project. b. Write an analysis of the ratio results that you found. Compare the ratio results against the industry or main competitor. In your analysis you should answer the following...

TARGET CORPORATION Evaluate the company’s overall financial performance, In what areas are they doing well and...

TARGET CORPORATION Evaluate the company’s overall financial performance, In what areas are they doing well and the areas in which it is not Discuss the steps that you believe the company should take to be more attractive to shareholders and creditors.

Find 2018 financial statements and other financial data (e.g., beta) for the Boeing Company (Stock ticker:...

Find 2018 financial statements and other financial data (e.g., beta) for the Boeing Company (Stock ticker: BA) from Yahoo! Finance, Google Finance, MSN Money, or other sources. (1) Estimate the company’s weights of capital (debt, preferred stock, and common stock) in 2018 (2) Estimate the company’s before-tax and after-tax component cost of debt in 2018 (3) Estimate the firm’s component cost of preferred stock in 2018 (4) Estimate the component cost of common equity using CAPM in 2018 (5) Compute the firm’s weighted average cost...

Segment Analysis Winston Sylvester Corporation is a brokerage and financial service company. The company recently provided...

Segment Analysis Winston Sylvester Corporation is a brokerage and financial service company. The company recently provided information about its major business segments as follows (in millions): Investor Services Institutional Services Revenues $2,440 $1,573 Income from operations 1,044 172 Depreciation 90 50 a. The segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan...

Segment Analysis Winston Sylvester Corporation is a brokerage and financial service company. The company recently provided...

Segment Analysis Winston Sylvester Corporation is a brokerage and financial service company. The company recently provided information about its major business segments as follows (in millions): Investor Services Institutional Services Revenues $2,510 $1,553 Income from operations 1,042 182 Depreciation 100 56 a. The segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan...

Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's cutoff rate is...

Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's cutoff rate is 12%. Data for the two proposals follow. Proposal X Proposal Y Required investment $280,000 $280,000 Annual after-tax cash inflows 66,000 After-tax cash inflows at the end of years 3, 6, 9, and 12 198,000 Life of project 12 years 12 years Using net present value analysis, which proposal is the more attractive? Do not use negative signs with your answers. Round PV answers to...

Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's cutoff rate is...

Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's cutoff rate is 12%. Data for the two proposals follow. Proposal X Proposal Y Required investment $280,000 $280,000 Annual after-tax cash inflows 41,250 After-tax cash inflows at the end of years 3, 6, 9, and 12 95,000 Life of project 12 years 12 years What is the cash payback period for Proposal X? For Proposal Y? Hint: For Proposal Y, in what year (3, 6, 9 or...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (Market value = book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock price, Po $15 Shares outstanding, no 200,000 Tax rate, T (federal-plus-state) 40% The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 30% debt based on market values, its cost of equity, rs, will...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (Market value = book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock price, Po $15 Shares outstanding, no 200,000 Tax rate, T (federal-plus-state) 40% The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 35% debt based on market values, its cost of equity, rs, will...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given...

Capital Structure Analysis The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (Market value = book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock price, Po $15 Shares outstanding, no 200,000 Tax rate, T (federal-plus-state) 40% The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 40% debt based on market values, its cost of equity, rs, will...

Subjects