You determine the format. I would like you to use some computer application, not pen and paper. I would suggest WORD for any analysis comments and EXCEL for any spreadsheet analysis (Horizontal/Vertical) You are analyzing a company from a financial standpoint and comparing them to another company. Make it easy for us to read and understand. Make a recommendation to deal with this company or not based on your analysis. Choose a company from the following public companies. That means they trade their stock on a major stock exchange to anyone. TARGET, COSTCO, MACYS, NORDSTROM, WALLMART, CVS, ALBERTSONS (includes Safeway), AMAZON, OR KOHLS. Go to the company website to get the full financial information. Or just google the company name and 10K. The 10K or the earnings release at the fiscal year end has the financial results. YOU MUST USE A FULL YEAR INCOME STATEMENT. For most you should be able to find the 2019 10K. If not, use the 2018. Look at the Income statement, and balance sheet. If you want to know what the company says about its financial results read the latest financial statement released by the company.

1. Do a Horizontal analysis of the Income Statement and Balance Sheet and a Vertical analysis of the Income Statement using 2019 and 2018 or 2018 and 2017. If you can download into EXCEL that would work great for this. If not, input the numbers into EXCEL or some other spreadsheet program.

2. Tell me a little about the company.What does the company do? What do they sell?Where are they incorporated? Where is their headquarters? Who are their auditors?Who else is in this business? Who are the competitors?Look at their Statement of Cash Flows – did cash go up since last year or down. What caused the largest increases, largest decreases? List the top 3 things causing cash to go up and 3 causing cash to go down.Do the have a positive net income, is it higher than last year? What are the big changes on the income statement from last year?How do they account for inventory – FIFO, LIFO, or Weighted Avg?How do they depreciate their physical assets, straight line or other?Do they have any unearned or deferred revenue?Is their current ratio higher or lower than last year?What is their stock price per share? Is it higher or lower than a year ago?If you could ask the company president 3 questions, what would they be?

3. Choose a second company from the list above. These are all merchandise companies so choose any one you want. Some might have very big differences in their financials because some sell high volume at lower prices and some sell lower volume at higher prices. Analyze the financial results of the 2 companies side by side including the following: (For this, you will need to find the last full year of financial results for your second company, either 2019 or 2018) Current RatioDebt ratio?Quick ratio (to be discussed in class)How much cash do they have? Gross Profit – some don’t calculate it – if so, skip.Profit Margin (Net Income divided by Net Sales or Revenue)Accounts Receivable Turnover, Average days to collect (365/AR turnover)Inventory turnover. How many times in a year do they turn over inventoryWhat is their earnings per share? Or loss?What is their P/E ratio (use a current stock price, like May 15th)If you had the $$$ to invest, which company would you invest in?

9.41. Message Strategies: Making Routine Negative Announcements [LO-5]

Marketing specialists usually celebrate when target audiences forward their messages to friends and family—essentially acting as unpaid advertising and sales representatives. In fact, the practice of viral marketing is based on this hope. For one Starbucks regional office, however, viral marketing started to make the company just a bit sick. The office sent employees in the Southeast an email coupon for a free iced drink and invited them to share the coupon with family and friends. To the surprise of virtually no one who understands the nature of online life, the email coupon multiplied rapidly, to the point that Starbucks stores all around the country were quickly overwhelmed with requests for free drinks. The company decided to immediately terminate the free offer, a month ahead of the expiration date on the coupon.

Your task: Write a one-paragraph message that can be posted on the Starbucks website and at individual stores, apologizing for the mix-up and explaining that the offer is no longer valid.

Kyle, Casey and Kelly are the sole three workers at Becker and Joe electronics. They can each buy their insurance through the employer's firm if they want to, but each will have their wages reduced by the full premium if they choose to participate in the plan. Their personal actuarially fair premiums (AFPs) are listed below, along with the average AFPs depending on how many of them choose to participate in the insurance plan. Assume there is no moral hazard. The insurance company observes the number of employees that buy the policy and knows the relationship between the number of buyers and the average AFP. However, the insurer cannot observe each worker’s individual AFP unless it performs a medical exam on each worker. If the insurer does not perform the medical exams, assume it charges each worker a premium equal to the average AFP given the total number of workers who buy insurance. If the insurer does perform the medical exams, assume it charges each employee a premium equal to their individual AFP.

a) Suppose medical exams are not conducted. What factors will determine whether or not Kelly will buy insurance (assume Kelly knows that if he purchases the policy, Kyle and Casey will also purchase the policy)?

b) What determines whether or not Casey would like the insurance company to conduct the medical exams?

Use calculations to support your answer

You are a US company which makes fashion accessories, particularly fashion sunglasses. Recently you decided to expand the company internationally and you are going to start first in the European Union (EU) which is one of the worlds largest markets. You will both produce some products there and also sell some products there. Your forecast for next year is below. In the forecast, any item marked as an EU item is actually the US dollar equivalent of Euro which has been translated at the EUR forward rate.

Question: What answer best represents the foreign exchange exposure in your forecast?

Spot EUR fx rate: 1.20 Forward EUR fx rate: 1.22 (all numbers expressed as $USD '000)

Cash Revenues

US revenues $5,000

EU revenues $2,000

Cash Costs

Corporate costs ($1,000)

Research & development ($500)

US capital investments ($100)

EU capital investments ($2,000)

US salaries ($2,000)

EU salaries ($1,000)

Possible answers:

$1,000

($1,000)

(820 Euro)

(1,000 Euro)

Please show step by step answers and reasonings

Thank you

Week 6 Assignment: Case Study: Stephenson Real Estate Recapitalization

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past 18 years, and the shareholders are satisfied with the company’s management. Prior to founding Stephenson Real Estate, Robert was the founder and CEO of a failed alpaca farming operation. The resulting bankruptcy made him extremely averse to debt financing. As a result, the company is entirely equity financed, with 11 million shares of common stock outstanding. The stock currently trades at $48.50 per share. Stephenson is evaluating a plan to purchase a huge tract of land in the southeastern United States for $45 million. The land will subsequently be leased to tenant farmers. This purchase is expected to increase Stephenson’s annual pretax earnings by $10 million in perpetuity. Kim Weyand, the company’s new CFO, has been put in charge of the project. Kim has determined that the company’s current cost of capital is 10.5 percent. She feels that the company would be more valuable if it included debt in its capital structure, so she is evaluating whether the company should issue debt to entirely finance the project. Based on some conversations with investment banks, she thinks that the company can issue bonds at par value with a coupon rate of 7 percent. Based on her analysis, she also believes that a capital structure in the range of 70 percent equity⁄30 percent debt would be optimal. If the company goes beyond 30 percent debt, its bonds would carry a lower rating and a much higher coupon because the possibility of financial distress and the associated costs would rise sharply. Stephenson has a 40 percent corporate tax rate (state and federal). If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. Review Stephenson's market value balance sheet before it announces the purchase. Suppose Stephenson decides to issue equity to finance the purchase. What is the net present value of the project? Review Stephenson's market value balance sheet after it announces that the firm will finance the purchase using equity. What would be the new price per share of the firm's stock? How many shares will Stephenson need to issue to finance the purchase? Review Stephenson's market value balance sheet after the equity issue but before the purchase has been made. How many shares of common stock does Stephenson have outstanding? What is the price per share of the firm's stock? Review Stephenson's market value balance sheet after the purchase has been made. Suppose Stephenson decides to issue debt to finance the purchase. What will the market value of the Stephenson company be if the purchase is financed with debt? Review Stephenson's market value balance sheet after both the debt issue and the land purchase. What is the price per share of the firm's stock? Which method of financing maximizes the per-share stock price of Stephenson's equity? In a 2-3 page analysis, answer the questions provided at the end of the case study. Be sure to support your analysis with appropriate calculations and critical thought.

Market balance sheet info: Before the land purchase: Assets=$533,500,000 Total Assets: $533,500,000 Equity=$533,500,000 Debt & Equity=$533,500,000

Market balance sheet after purchase of land: Old Assets=$533,500,000

Will need calculations for new balance sheet including NPV and Equity. Will also need calculations for the change in stock value and how much stock would need to be issued to purchase land. The remaining questions will follow a similar format in which you create Market Value Balance Sheets and calculations.

some people often have difficulty understanding the concept of Deferred Revenues. Deferred Revenues occur when someone pays you to provide a service or good ahead of time. Since you haven’t earned the money yet, you record it as Unearned Revenue, a liability. Once the revenue is ‘earned’ you write-off the liability and recognize revenue. Are there any moral issues involved in accepting money before it is earned? What happens if you fail to provide the service or good to the customer as agreed upon?

What are your thoughts on this from a Christian perspective? cite

A .Describe a detailed example of how a us financial services company could use export credit insurance to minimize risk when providing financial services to institutions in China

B.List and describe 4 different documents that would be used in an import/export transaction involving the sales of paint by a us distributor to a buyer in Mexico

If you were the CEO of Toys R Us: - Explain what caused Toys R Us to fail. - What would your strategy and approach be to turn the Company around? Explain. - What would you have done to change the Company’s fate, so that it would be thriving today instead of going out of business?

Suppose a recent random sample of employees nationwide that have a 401(k) retirement plan found that 22% of them had borrowed against it in the last year. A random sample of 130 employees from a local company who have a 401(k) retirement plan found that 16 had borrowed from their plan. Based on the sample results, is it possible to conclude, using αα = .05, that the local company had a lower proportion of borrowers from its 401(k) retirement plan than the 22% reported nationwide? Round all numeric results to 3 decimal places.

1. Write the hypotheses to test if the proportion of employees borrowing from their plan is less than the percentage reported nationwide.
H0: The proportion of employees who have borrowed from their plan is （less than /more than / the same as) the 22% reported nationwide. The difference (is/ is not ) due to chance.

HA: The proportion of employees who have borrowed from their plan  ( is less than / more than / the same as )the 22% reported nationwide. The difference ( is/ is not ) due to chance.

2. Calculate the proportion of employees in the sample who borrowed from their retirement plan.
p̂ =

3.Describe a setup for a simulation that would be appropriate in this situation and how the p-value can be calculated using the simulation results. To setup a simulation for this situation, we let each employee be represented with a card. We take 100 cards, ( ) black cards represent employees who have borrowed from their plan and ( ) red cards represent employees who have not. Shuffle the cards and draw with replacement ( ) cards representing the random sample of customers. Calculate the proportion of  ( red/ black )cards in the sample and call it p̂sim. Repeat 3,000 times and plot the resulting sample proportions. The p-value will be the proportion of simulations where p̂simp^sim is  (greater than/ less than/ further from 0.22 than) ( ) .