FIN 640 Milestone One Guidelines and Rubric Overview F.docx

FIN 640 Milestone One Guidelines and Rubric
Overview: For your final project, the CEO has asked you, the
new investment manager of XYZ Tech Company, to produce an
investment analysis report
describing how to invest the firm’s cash and cash equivalents in
the financial markets. You will prepare an investment analysis
report for the company, which will
include a portfolio analysis template that you will use to outline
how you will invest the cash in selected public corporations.
Finally, your reasons behind your
investment strategies should be noted in an executive summary.
For this first milestone, due in Module Three, you will submit
your company profile. Using the investment parameters for
XYZ Tech Company along with your
own financial database research, you will fill in the portfolio
analysis template and write a 2- to 3-page paper outlining the
securities that your company will
invest in to create a well-diversified investment portfolio. You
will analyze each company and its performance in the financial
markets over the past five years,
include a company valuation for each firm, and identify
stakeholders in the company.
Prompt: First, visit Morningstar to retrieve stock and bond
information for each of the following companies:

Next, using the portfolio analysis template, provide the
specified data to explain the company’s growth period
(revenues, earnings market share, etc.).
Finally, in a 2- to 3-page paper, discuss the five-year history of
each company by visiting the respective websites and databases
covering the firm and industry.
The paper should briefly discuss the products and services
produced by each company that were major contributors to the
company’s success. It should also
discuss each company’s strengths given the competitive nature
of the industry. Based on the financial items and key ratios of
the company that you have
researched, include a brief discussion of the company’s
valuation. (Hint: The Key Ratios on the Morningstar website
list competition and industry ratios and
could be downloaded directly into Excel for easier comparison.)
You should also identify the key stakeholders, particularly
common stakeholders, in the
company.
http://snhu-
media.snhu.edu/files/course_repository/graduate/fin/fin640/fin6
40_portfolio_analysis_template.xlsx
http://www.morningstar.com/
http://snhu-

media.snhu.edu/files/course_repository/graduate/fin/fin640/fin6
40_portfolio_analysis_template.xlsx
Specifically, you must address the following critical elements:
I. Company and Market Analysis: In this section, you will
analyze the company and its position in the financial markets.
A. Financial Markets
i. Analyze the five-year performance of the domestic economy
relative to the financial markets (using the portfolio analysis
template).
ii. Explain specific market performance data based on compiled
asset valuation model inputs supported by database research of
five-year
sector and industry performance and current trends.
iii. Evaluate the impact of the five-year and current
macroeconomic data on asset prices.
B. Company Valuation
i. Analyze the company’s financial items and key ratios for a
comparison to peers and industry (using the portfolio analysis
template).
ii. Determine the intrinsic value of assets by inputting data into
the various asset valuation models.
D. Stakeholders
i. Identify five key stakeholders and their needs in relation to
the company’s portfolio.
ii. Identify the common stockholders’ primary objective and
their required return on equity.

Refer to your text readings and other course resources to
support your responses.
In Milestones Two and Three, and for the final project
submission, you will be using the portfolio analysis template
that you have prepared in this milestone. Be
sure to refer back to this (and update and revise it as necessary)
as you continue your work throughout the course. You should
also be monitoring the
portfolio’s performance on a daily basis and reading the
financial periodicals provided among the course resources to
stay current with your investments.
Be sure to apply instructor feedback on this milestone to your
final project.
Rubric
Guidelines for Submission: Submit both your completed
portfolio analysis template and company profile. The written
component of this milestone should be
submitted as a Word document, 2–3 pages in length, double-
spaced, using 12-point Times New Roman font, one-inch
margins, and the latest edition of the
APA manual for formatting and citations.
Please note that the grading rubric for this milestone submission
is not identical to that of the final project. The Final Project

Rubric will include an additional
“Exemplary” category that provides guidance as to how you can
go above and beyond “Proficient” in your final submission.
Instructor Feedback: This activity uses an integrated rubric in
Blackboard. Students can view instructor feedback in the Grade
Center. For more information,
review these instructions.
Critical Elements Proficient (100%) Needs Improvement (75%)
Not Evident (0%) Value
Financial Markets:
Domestic Economy
Analyzes the five-year
performance of the domestic
economy relative to the financial
markets
Analyzes the five-year
performance of the domestic
economy relative to the financial
markets, but analysis is cursory or
contains inaccuracies
Does not analyze the performance
of the domestic economy
13
Financial Markets: Asset
Valuation Model Inputs
Explains specific market

performance data based on
compiled asset valuation model
inputs supported by database
research of five-year sector and
industry performance and current
trends
Explains specific market
inputs, but explanation is cursory,
is not supported by database
research of five-year sector and
industry performance and current
trends, or contains inaccuracies
Does not explain specific market
inputs
13
Financial Markets:
Macroeconomic Data
Evaluates the impact of the five-
year and current macroeconomic
data on asset prices
Evaluates the impact of the five-
year and current macroeconomic
data on asset prices, but
evaluation is cursory or contains
inaccuracies

Does not evaluate the impact of
the macroeconomic data on asset
prices
13
Company Valuation:
Financial Items and Key
Ratios
Analyzes the company’s financial
items and key ratios in order to
demonstrate a comparison to
peers and industry
Analyzes the company’s financial
items and key ratios in order to
demonstrate a comparison to
peers and industry, but analysis is
cursory, comparison is incomplete,
or response contains inaccuracies
Does not analyze the company’s
financial items and key ratios in
order to demonstrate a
comparison to peers and industry
13
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf

Company Valuation:
Intrinsic Value
Determines the intrinsic value of
assets by inputting data into the
various asset valuation models and
explains how each model was
applied
Determines the intrinsic value of
assets by inputting data into the
various asset valuation models,
but determination contains
inaccuracies, or asset valuation
models are not used correctly, or
lacks explanation
Does not determine the intrinsic
value of assets
13
Stakeholders: Key
Stakeholders
Identifies five key stakeholders
and their needs in relation to the
company’s portfolio
Identifies key stakeholders and
their needs in relation to the
company’s portfolio, but does not
identify five stakeholders, needs
are inappropriately identified in
relation to the portfolio, or
response contains inaccuracies

Does not identify key stakeholders
and their needs in relation to the
company’s portfolio
13
Stakeholders: Common
Stockholders
Identifies the common
stockholders’ primary objective
and their required return on
equity
Identifies the common
stockholders’ primary objective
and their required return on
equity, but identification is
inaccurate or does not take into
account either the objective or
return on equity
Does not identify the common
stockholders’ primary objective or
their required return on equity
13
Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors

that negatively impact readability
and articulation of main ideas
Submission has critical errors
that prevent understanding of
ideas
9
Total 100%
Part Eighteen: Industrializing America
18-5 Address by George Engel, Condemned Haymarket
Anarchist (1886)
European immigrants came to the United States seeking a better
way of life. The factory condition they
experienced contrasted with the promise of liberty that had
attracted them to America. These condi-
tions stimulated a radical labor response that erupted into
violence at Chicago’s Haymarket Square in
1886, as George Engel explains.
When, in the year 1872, I left Germany because it had become
impossible for me to gain there, by the labor of my hands,
a livelihood such as man is worthy to enjoy-the introduction of
machinery having ruined the smaller craftsmen and made

the outlook for the future appear very dark to them-I concluded
to fare with my family to the land of America, the land that
had been praised to me by so many as the land of liberty.
On the occasion of my arrival at Philadelphia, on the 8th of
January, 1873, my heart swelled with joy in the hope
and in the belief that in the future I would live among free men
and in a free country. I made up my mind to become a good
citizen of this country, and congratulated myself on having left
Germany, and landed in this glorious republic. And I
believe my past history will bear witness that I have ever
striven to be a good citizen of this country. This is the first
occa-
sion of my standing before an American court, and on this
occasion it is murder of which I am accused. And for what rea-
sons do I stand here? For what reasons am I accused of murder?
The same that caused me to leave Germany-the
poverty-the misery of the working classes.
And here, too, in this “free republic,” in the richest country of
the world, there are numerous proletarians for
whom no table is set; who, as outcasts of society, stray
joylessly through life. I have seen human beings gather their
daily
food from the garbage heaps of the streets, to quiet therewith
their knawing hunger. . . .

When in 1878, I came here from Philadelphia, I strove to better
my condition, believing it would be less difficult to
establish a means of livelihood here than in Philadelphia, where
I had tried in vain to make a living. But here, too, I found
myself disappointed. I began to understand that it made no
difference to the proletarian, whether he lived in New York,
Philadelphia, or Chicago. In the factory in which I worked, I
became acquainted with a man who pointed out to me the
causes that brought about the difficult and fruitless battles of
the workingmen for the means of existence. He explained to me,
by the logic of scientific Socialism, how mistaken I was in
believing that I could make an independent living by the toil of
my hands, so long as machinery, raw material, etc., were
guaranteed to the capitalists as private property by the State. . .
.
I took part in politics with the earnestness of a good citizen; but
I was soon to find that the teachings of a “free
ballot box” are a myth and that I had again been duped. I came
to the opinion that as long as workingmen are economi-
cally enslaved they cannot be politically free. It became clear to
me that the working classes would never bring about a
form of society guaranteeing work, bread, and a happy life by
means of the ballot. . . .
I . . . joined the International Working People’s Association,

that was just being organized. The members of that
body have the firm conviction, that the workingman can free
himself from the tyranny of capitalism only through force;
just as all advances of which history speaks, have been brought
about through force alone. We see from the history of this
country that the first colonists won their liberty only through
force that through force slavery was abolished, and just as the
man who agitated against slavery in this country, had to ascend
the gallows, so also must we. He who speaks for the
workingman today must hang. And why? Because this Republic
is not governed by people who have obtained their office
honestly.
Who are the leaders at Washington that are to guard the
interests of this nation? Have they been elected by the
people, or by the aid of their money? They have no right to
make laws for us, because they were not elected by the people.
These are the reasons why I have lost all respect for American
laws.
The fact that through the improvement of machinery so many
men are thrown out of employment, or at best,
working but half the time, brings them to reflection. They have
leisure, and they consider how their conditions can be
changed. Reading matter that has been written in their interest
gets into their hands, and, faulty though their education may

be, they can nevertheless cull the truths contained in those
writings. This, of course, is not pleasant for the capitalistic
class,
but they cannot prevent it. And it is my firm conviction that in a
comparatively short time the great mass of proletarians
will understand that they can be freed from their bonds only
through Socialism. One must consider what Carl Schurs said
scarcely eight years ago: That, “in this country there is no space
for Socialism;” and yet today Socialism stands before the
bars of the court. For this reason it is my firm conviction that if
these few years sufficed to make Socialism one of the
burning questions of the day, it will require but a short time
more to put it in practical operation.
All that I have to say in regard to my conviction is, that I was
not at all surprised; for it has ever been that the men
who have endeavored to enlighten their fellow man have been
thrown into prison or put to death, as was the case with John
Brown. I have found, long ago, that the workingman has no
more rights here than any where else in the world. The State’s
Attorney has stated that we were not citizens. I have been a
citizen this long time; but it does not occur to me to appeal
for my rights as a citizen, knowing as well as I do that this does
not make a particle of difference. Citizen or not-as a work-
464

ingman I am without rights, and therefore I respect neither your
rights nor your laws, which are made and directed by one
class against the other; the working class.
Of what does my crime consist?
That I have labored to bring about a system of society by which
it is impossible for one to hoard millions, through
the improvements in machinery, while the great masses sink to
degradation and misery. As water and air are free to all, so
should the inventions of scientific men be applied for the
benefit of all. The statute laws we have are in opposition to the
laws of nature, in that they rob the great masses of their rights
“to life, liberty, and the pursuit of happiness.”
I am too much a man of feeling not to battle against the
societary conditions of today. Every considerate person
must combat a system which makes it possible for the individual
to rake and hoard millions in a few years, while, on the
other side, thousands become tramps and beggars.
Is it to be wondered at that under such circumstances men arise,
who strive and struggle to create other conditions,
where the humane humanity shall take precedence of all other

considerations. This is the aim of Socialism, and to this I
joyfully subscribe.
The States Attorney said here that “Anarchy” was “on trial.”
Anarchism and Socialism are as much alike, in my opinion, as
one egg is to another. They differ only in their tac-
tics. The Anarchists have abandoned the way of liberating
humanity which Socialists would take to accomplish this. I
say: Believe no more in the ballot, and use all other means at
your command. Because we have done so we stand arraigned
here today-because we have pointed out to the people the proper
way. The Anarchists are being hunted and persecuted for
this in every clime, but in the face of it all Anarchism is gaining
more and more adherents, and if you cut off our oppor-
tunities of open agitation, then will the work be done secretly.
If the State’s Attorney thinks he can root out Socialism by
hanging seven of our men and condemning the other to fifteen
years servitude, he is laboring under a very wrong impres-
sion. The tactics simply will be changed-that is all. No power
on earth can rob the workingman of his knowledge of how
to make bombs-and that knowledge he possesses. . . .
If Anarchism could be rooted out, it would have been
accomplished long ago in other countries. On the night on
which the first bomb in this country was thrown, I was in my

apartments at home. I knew nothing of the conspiracy which
the States Attorney pretends to have discovered.
It is true I am acquainted with several of my fellow-defendants
with most of them, however, but slightly, through
seeing them at meetings, and hearing them speak. Nor do I
deny, that I too, have spoken at meetings, saying that, if every
workingman had a bomb in his pocket, capitalistic rule would
soon come to an end.
That is my opinion, and my wish; it became my conviction,
when I mentioned the wickedness of the capitalistic
conditions of the day.
When hundreds of workingmen have been destroyed in mines in
consequence of faulty preparations, for the
repairing of which the owners were too stingy, the capitalistic
papers have scarcely noticed it. As with what satisfaction and
cruelty they make their report, when here and there workingmen
have been fired upon, while striking for a few cents
increase in their wages, that they might earn only a scanty
subsistance.
Can any one feel any respect for a government that accords
rights only to the privileged classes, and none to the
workers? We have seen but recently how the coal barons
combined to form a conspiracy to raise the price of coal, while

at the same time reducing the already low wages of their men.
Are they accused of conspiracy on that account? But when
working men dare ask an increase in their wages, the militia and
the police are sent out to shoot them down.
For such a government as this I can feel no respect, and will
combat them, despite their power, despite their
police, despite their spies.
I hate and combat, not the individual capitalist, but the system
that gives him those privileges. My greatest wish
is that workingmen may recognize who are their friends and
who are their enemies.
As to my conviction, brought about as it was, through
capitalistic influence, I have not one word to say.
1. Compare/contrasts Engel’s hopes and expectations in coming
to America and the reality with which
he was faced.
2. Why, according to Engel, is it impossible for the working
man to gain enough money to make an
independent living? What factors are involved in the
disenfranchisement and oppression of the
working man?
3. Examine and explain Engel’s opinion regarding what the
working class must do to gain fair
treatment and a chance for success? What historical precedents
does Engel cite to support this
conclusion? What obstacles stand in the way of the working
class? What must be done to

overcome these obstacles?
465
18-8 Ida B. Wells-Barnett, from A Red Record (1895)
The rise of racial segregation was accompanied by racial
violence that went punished by the law,
including lynching. Journalist Ida B. Wells-Barnett emerged as
the strongest voice against lynching.
A word as to the charge itself. In considering the third reason
assigned by the Southern white people for the butchery of
blacks, the question must be asked, what the white man means
when he charges the black man with rape. Does he mean
the crime which the statutes of the states describe as such? Not
by any means. With the Southern white man, any misal-
liance existing between a white woman and a colored man is a
sufficient foundation for the charge of rape. The southern
white man says that it is impossible for a voluntary alliance to
exist between a white woman and a colored man, and
therefore, the fact of an alliance is a proof of force. In
numerous instances where colored men have been lynched on
the
charge of rape, it was positively known at the time of lynching,
and indisputably proven after the victim’s death, that the
relationship sustained between the man and the woman was
voluntary and clandestine, and that in no court of law could
even the charge of assault have been successfully maintained.
It was for the assertion of this fact, in the defense of her own
race, that the writer hereof became an exile; her

property destroyed and her return to her home forbidden under
penalty of death, for writing the following editorial which
was printed in her paper, the Free Speech, in Memphis, Tenn.,
May 21, 1892:
“Eight Negroes lynched since last issue of the Free Speech: one
at Little Rock, Ark., last Saturday morning where
the citizens broke (?) into the penitentiary and got their man;
three near Anniston, Ala., one near New Orleans; and three
at Clarksville, Ga.; the last three for killing a white man, and
five on the same old racket-the new alarm about raping white
women. The same programme of hanging, then shooting bullets
into the lifeless bodies was carried out to the letter. Nobody
in this section of the country believes in the old threadbare lie
that Negro men rape white women. If Southern white men
are not careful, they will overreach themselves and public
sentiment will have a reaction; a conclusion will then be
reached
which will be very damaging to the moral reputation of their
women.”
But threats cannot suppress the truth, and while the Negro
suffers the soul deformity, resultant from two and a half
centuries of slavery, he is no more guilty of this vilest of all
vile charges than the white man who would blacken his
name.
During all the years of slavery, no such charge was ever made,
not even during the dark days of the rebellion. . .
. While the master was away fighting to forge the fetters upon
the slave, he left his wife and children with no protectors
save the Negroes themselves. . . .
Likewise during the period of alleged “insurrection,” and
alarming “race riots,” it never occurred to the white man
that his wife and children were in danger of assault. Nor in the

Reconstruction era, when the hue and cry was against
“Negro Domination,” was there ever a thought that the
domination would ever contaminate a fireside or strike toward
the
virtue of womanhood. . . .
It is not the purpose of this defense to say one word against the
white women of the South. Such need not be said,
but it is their misfortune that the . . . white men of that section .
. . to justify their own barbarism . . . assume a chivalry
which they do not possess. True chivalry respects all
womanhood, and no one who reads the record, as it is written in
the
faces of the million mulattos in the South, will for a minute
conceive that the southern white man had a very chivalrous
regard for the honor due the women of his race, or respect for
the womanhood which circumstances placed in his power.
. . . Virtue knows no color line, and the chivalry which depends
on complexion of skin and texture of hair can command
no honest respect.
When emancipation came to the Negroes . . . from every nook
and corner of the North, brave young white women
. . . left their cultured homes, their happy associations and their
lives of ease, and with heroic determination went to the
South to carry light and truth to the benighted blacks. . . . They
became the social outlaws in the South. The peculiar sen-
sitiveness of the southern white men for women, never shed its
protecting influence about them. No friendly word from
their own race cheered them in their work; no hospitable doors
gave them the companionship like that from which they had
come. No chivalrous white man doffed his hat in honor or
respect. They were “Nigger teachers”-unpardonable offenders
in the social ethics of the South, and were insulted, persecuted
and ostracized, not by Negroes, but by the white manhood
which boasts of its chivalry toward women.

And yet these northern women worked on, year after year. . . .
Threading their way through dense forests, working
in schoolhouses, in the cabin and in the church, thrown at all
times and in all places among the unfortunate and lowly
Negroes, whom they had come to find and to serve, these
northern women, thousands and thousands of them, have spent
more than a quarter of a century in giving the colored people
their splendid lessons for home and heart and soul. Without
protection, save that which innocence gives to every good
woman, they went about their work, fearing no assault and suf-
fering none. Their chivalrous protectors were hundreds of miles
away in their northern homes, and yet they never feared
any “great dark-faced mobs.” . . . They never complained of
assaults, and no mob was ever called into existence to avenge
crimes against them. Before the world adjudges the Negro a
moral monster, a vicious assailant of womanhood and a
469
menace to the sacred precincts of home, the colored people ask
the consideration of the silent record of gratitude, respect,
protection and devotion of the millions of the race in the South,
to the thousands of northern white women who have
served as teachers and missionaries since the war. . . .
These pages are written in no spirit of vindictiveness. . . . We
plead not for the colored people alone, but for all
victims of the terrible injustice which puts men and women to
death without form of law. During the year 1894, there were
132 persons executed in the United States by due form of law,
while in the same year, 197 persons were put to death by

mobs, who gave the victims no opportunity to make a lawful
defense. No comment need be made upon a condition of
public sentiment responsible for such alarming results.
1. What does the author have to say regarding the charges of
rape that are leveled against African
Americans?
2. Explain the author’s opinion of the “chivalry” of Southern
men. What evidence does the author use
to question it?
470
Part Nineteen: Immigrant and Urban Nation
19-8 Lee Chew, Life of a Chinese Immigrant (1903)
The following selection is from a biography of a Chinese
immigrant commissioned by the reformist
journal The Independent. Note that Chew arrived in the United
States before the Chinese Exclusion Act
of 1882, and was therefore dictating this as a middle-aged man.
Chew was involved in many of the jobs
associated with Chinese immigrants during this period-mining,
laundry, and railroad construction.
From The Independent, 54 (2818), February 19, 1903, 417-423.
The village where I was born is situated in the province of
Canton, on one of the banks of the Si-Kiang River. It is called
a village, altho it is really as big as a city, for there are about
5,000 men in it over eighteen years of age-women and chil-

dren and even youths are not counted in our villages....
...I heard about the American foreign devils, that they were
false, having made a treaty by which it was agreed that
they could freely come to China, and the Chinese as freely go to
their country. After this treaty was made China opened
its doors to them and then they broke the treaty that they had
asked for by shutting the Chinese out of their country....
The man had gone away from our village a poor boy. Now he
returned with unlimited wealth, which he had
obtained in the country of the American wizards. After many
amazing adventures he had become a merchant in a city called
Mott Street, so it was said....
Having made his wealth among the barbarians this man had
faithfully returned to pour it out among his tribesmen,
and he is living in our village now very happy, and a pillar of
strength to the poor.
The wealth of this man filled my mind with the idea that I, too,
would like to go to the country of the wizards and
gain some of their wealth, and after a long time my father
consented, and gave me his blessing, and my mother took leave
of me with tears, while my grandfather laid his hand upon my
head and told me to remember and live up to the admoni-
tions of the Sages, to avoid gambling, bad women and men of

evil minds, and so to govern my conduct that when I died
my ancestors might rejoice to welcome me as a guest on high.
My father gave me $100, and I went to Hong Kong with five
other boys from our place and we got steerage pas-
sage on a steamer, paying $50 each....
...Of the great power of these people I saw many signs. The
engines that moved the ship were wonderful monsters,
strong enough to lift mountains. When I got to San Francisco,
which was before the passage of the Exclusion act, I was
half starved, because I was afraid to eat the provisions of the
barbarians, but a few days’ living in the Chinese quarter made
me happy again....
The Chinese laundryman does not learn his trade in China; there
are no laundries in China.... All the Chinese laun-
drymen here were taught in the first place by American women
just as I was taught.
When I went to work for that American family I could not speak
a word of English, and I did not know anything
about house work. The family consisted of husband, wife and
two children. They were very good to me and paid me
$3.50 a week, of which I could save $3....
In six months I had learned how to do the work of our house
quite well, and I was getting $5 a week and board,

and putting away about $4.25 a week. I had also learned some
English, and by going to a Sunday school I learned more
English and something about Jesus, who was a great Sage, and
whose precepts are like those of Kong-foo-tsze.
It was twenty years ago when I came to this country, and I
worked for two years as a servant, getting at least $35
a month. I sent money home to comfort my parents....
When I first opened a laundry it was in company with a partner,
who had been in the business for some years. We
went to a town about 500 miles inland, where a railroad was
building. We got a board shanty and worked for the men
employed by the railroads....
We were three years with the railroad, and then went to the
mines, where we made plenty of money in gold dust,
but had a hard time, for many of the miners were wild men who
carried revolvers and after drinking would come into our
place to shoot and steal shirts, for which we had to pay. One of
these men hit his head hard against a flat iron and all the
miners came and broke our laundry, chasing us out of town.
They were going to hang us. We lost all our property and $365
in money, which a member of the mob must have found.
Luckily most of our money was in the hands of Chinese bankers
in San Francisco. I drew $500 and went East to

Chicago, where I had a laundry for three years, during which I
increased my capital to $2,500. After that I was four years
in Detroit. I went home to China in 1897, but returned in 1898,
and began a laundry business in Buffalo.
The ordinary laundry shop is generally divided into three
rooms. In front is the room where the customers are
received, behind that a bedroom and in the back the work shop,
which is also the dining room and kitchen. The stove and
cooking utensils are the same as those of the Americans....
I have found out, during my residence in this country, that much
of the Chinese prejudice against Americans is
unfounded, and I no longer put faith in the wild tales that were
told about them in our village, tho some of the Chinese,
496
Part Nineteen: Immigrant and Urban Nation
who have been here twenty years and who are learned men, still
believe that there is no marriage in this country, that the
land is infested with demons and that all the people are given
over to general wickedness.
I know better. Americans are not all bad, nor are they wicked
wizards. Still, they have their faults, and their treat-

ment of us is outrageous....
The reason why so many Chinese go into the laundry business
in this country is because it requires little capital
and is one of the few opportunities that are open....
There is no reason for the prejudice against the Chinese. The
cheap labor cry was always a falsehood. Their labor
was never cheap, and is not cheap now. It has always
commanded the highest market price. But the trouble is that the
Chi-
nese are such excellent and faithful workers that bosses will
have no others when they can get them. If you look at men
working on the street you will find an overseer for every four or
five of them. That watching is not necessary for Chinese.
They work as well when left to themselves as they do when
some one is looking at them....
1. What stories of America had the author been exposed to?
What were the author’s expectations
upon coming to America? How did these expectations and
preconceptions compare with the
author’s actual experience?
2. Describe the measure of success and difficulty experienced
by the author. To what does the author
attribute his success? his difficulty?
497

Apple (AAPL)Apple (AAPL)
Stock201620172018201920202021Revenues215639224264.5623
3235.1424242564.548096252267.13001984262357.815220634C
ost of Goods
Sold131376156985.192163264.59968169795.1836672176586.99
1013888183650.470654444Selling, General & Administrative
Expenses1419438124.975239649.97420841235.9731763241624.
076453273643289.0395114046Research and
development1004500000Operating
Income6002429154.392830320.56851231533.3912524834056.0
62552678435418.3050547855Net Interest Expenditure-
134800000Pre-Tax
Income6137229154.392830320.56851231533.3912524834056.0
62552678435418.3050547855Taxes156858746.317849096.1705
5369460.01737574410216.818765803510625.4915164357Net
Income4568720408.0749621224.397958422073.3738767362383
9.243786874924792.8135383499Earnings Per
Share8.30672727273.71055908363.8589814474.01334070494.3
3440796124.5077842797Shares
Outstanding550055005500550055005500Apple (AAPL)
BondFirmInd AvgDebt & Coverage Ratios
Debt/Assets0.60132240760.5Debt/Equity0.680.47Current
Assets/Current
Liability1.35EBITDA/Interest43.1524.46Debt/EBITDA0.320.28
Cash Flow Ops/Total Debt0.270.22
Sheet1Growth Profitability and Financial Ratios for Apple
IncFinancials2007-092008-092009-092010-092011-092012-
092013-092014-092015-092016-09TTMRevenue USD
Mil24,57837,49142,90565,225108,249156,508170,910182,7952
33,715215,639220,457Gross Margin
%33.235.240.139.440.543.937.638.640.139.138.4Operating
Income USD
Mil4,4078,32711,74018,38533,79055,24148,99952,50371,23060
,02459,322Operating Margin
%17.922.227.428.231.235.328.728.730.527.826.9Net Income
USD

Mil3,4956,1198,23514,01325,92241,73337,03739,51053,39445,
68745,730Earnings Per Share
USD0.560.971.32.163.956.315.686.459.228.318.58Dividends
USD0.381.631.811.982.182.28Payout Ratio %
*27.428.522.324.826.6Shares
Mil6,2256,3156,3496,4736,5576,6176,5226,1235,7935,5005,364
Book Value Per Share *
USD2.23.395.027.4511.7816.9919.620.6222.5323.7125.72Opera
ting Cash Flow USD
Mil5,4709,59610,15918,59537,52950,85653,66659,71381,26665
,82466,339Cap Spending USD Mil-986-1,199-1,213-2,121-
7,452-9,402-9,076-9,813-11,488-13,548-13,378Free Cash Flow
USD
Mil4,4848,3978,94616,47430,07741,45444,59049,90069,77852,
27652,961Free Cash Flow Per Share *
USD0.631.331.412.544.596.316.467.7311.828.97Working
Capital USD
Mil12,65720,59820,04920,95617,01819,11129,6285,0838,76827
,863Key Ratios -> ProfitabilityMargins % of Sales2007-092008-
092009-092010-092011-092012-092013-092014-092015-
092016-
09TTMRevenue100100100100100100100100100100100COGS6
6.8364.859.8660.6259.5256.1362.3861.4159.9460.9261.59Gross
Margin33.1735.240.1439.3840.4843.8737.6238.5940.0639.0838.
41SG&A12.0610.039.678.467.026.426.346.566.136.586.62R&D
3.182.963.112.732.242.162.623.33.454.664.89OtherOperating
Margin17.9322.2127.3628.1931.2235.328.6728.7230.4827.8426.
91Net Int Inc &
Other2.441.650.760.240.380.330.680.540.550.631EBT
Margin20.3723.8628.1228.4231.635.6329.3529.2631.0328.4627.
91Profitability2007-092008-092009-092010-092011-092012-
092013-092014-092015-092016-09TTMTax Rate
%30.1929.8931.7524.4224.2225.1626.1526.1326.3725.5625.67
Net Margin
%14.5614.8819.1921.4823.9526.6721.6721.6122.8521.1920.74
Asset Turnover

(Average)1.1310.991.061.131.070.890.830.890.70.69Return on
Assets
%16.4314.8918.9222.8427.0728.5419.3418.0120.4514.9314.29F
inancial Leverage
(Average)1.741.881.51.571.521.491.682.082.432.512.5Return
on Equity
%28.5227.1931.2735.2841.6742.8430.6433.6146.2536.934.57Re
turn on Invested Capital
%24.8427.1930.2234.6941.0442.0126.0826.231.3221.9519.75Int
erest Coverage369.79140.2899.9343.1533.14Key Ratios ->
Growth2007-092008-092009-092010-092011-092012-092013-
092014-092015-092016-09Latest QtrRevenue %Year over
Year24.2935.332.152.0265.9644.589.26.9527.86-7.734.633-
Year
Average42.632.630.4839.5449.3753.9437.8619.0814.38.065-
Year
Average33.1239.2338.9736.1741.1645.4939.3933.6329.0814.78
10-Year
Average12.9918.5221.4723.3735.0539.1739.3136.2732.5827.29
Operating Income %Year over
Year79.7442.3287.0956.683.7963.48-11.37.1535.67-
15.730.793-Year
Average138.2556.0968.5260.9675.2867.5738.6515.828.8475-
Year
Average203.93104.7861.9668.9765.850.8434.9331.1112.1810-
Year Average37.4441.7342.78124.4866.2345.7237.68Net
Income %Year over Year75.7738.2770.3670.1684.9960.99-
11.256.6835.14-14.433-Year
Average133.1153.5660.5758.8575.0371.7738.2615.088.567.255-
Year
Average121.89133.9397.2260.0367.1164.250.2736.8430.671210
-Year Average31.6529.9233.3990.8887.4964.2844.6136.81EPS
%Year over Year73.1336.3969.466.8582.7159.5-
9.9713.5842.95-9.8710.533-Year
Average122.8750.958.7456.872.8569.4137.9217.7113.4913.535-
Year

Average112.83124.0291.2457.5664.962.2249.2937.8233.6216.0
110-Year
Average26.1525.9730.1185.8182.8862.3545.138.31Key Ratios -
> Cash FlowCash Flow Ratios2007-092008-092009-092010-
092011-092012-092013-092014-092015-092016-
09TTMOperating Cash Flow Growth %
YOY146.475.435.8783.04101.8235.515.5311.2736.09-19Free
Cash Flow Growth %
YOY186.8887.276.5484.1582.5737.837.5711.9139.84-25.08Cap
Ex as a % of
Sales4.013.22.833.256.886.015.315.374.926.286.07Free Cash
Flow/Sales
%18.2422.420.8525.2627.7926.4926.0927.329.8624.2424.02Fre
e Cash Flow/Net
Income1.281.371.091.181.160.991.21.261.311.141.16Key
Ratios -> Financial HealthBalance Sheet Items (in %)2007-
092008-092009-092010-092011-092012-092013-092014-
092015-092016-09Latest QtrCash & Short-Term
Investments60.761.8949.434.0822.316.5419.5910.8214.3220.88
20.06Accounts
Receivable15.911.8910.6513.210.0710.629.9711.7410.459.116.
16Inventory1.371.290.961.40.670.450.850.910.810.660.87Other
Current
Assets8.6612.65.436.765.625.144.996.095.192.573.4Total
Current
Assets86.6287.6666.4355.4438.6632.7535.429.5630.7733.2230.
49Net
PP&E7.236.26.226.346.688.788.028.97.748.48.12Intangibles1.6
61.241.181.443.813.042.783.783.12.682.42Other Long-Term
Assets4.494.8926.1736.7850.8555.4353.857.7758.3955.758.97T
otal Assets100100100100100100100100100100100Accounts
Payable19.6113.9511.7915.9812.5712.0310.8113.0212.2211.598
.54Short-Term Debt2.723.793.614.18Taxes
Payable0.910.280.980.870.580.52Accrued
Liabilities4.979.47.26.456.974.762.523.328.676.856.9Other
Short-Term

Liabilities12.1112.264.324.853.524.237.197.783.082.512.3Total
Current
Liabilities36.6935.6124.2227.5624.0421.8921.0927.3727.7524.5
621.92Long-Term Debt8.1912.518.4123.4525.27Other Long-
Term
Liabilities5.9811.259.178.8710.1310.9711.0312.0212.7612.1212
.73Total
Liabilities42.6746.8633.3936.4334.1632.8640.3151.8958.9160.1
359.92Total Stockholders'
Equity57.3353.1466.6163.5765.8467.1459.6948.1141.0939.8740
.08Total Liabilities &
Equity100100100100100100100100100100100Liquidity/Financi
al Health2007-092008-092009-092010-092011-092012-092013-
092014-092015-092016-09Latest QtrCurrent
Ratio2.362.462.742.011.611.51.681.081.111.351.39Quick
Ratio2.092.072.481.721.351.241.40.820.891.221.2Financial
Leverage1.741.881.51.571.521.491.682.082.432.512.5Debt/Equi
ty0.140.260.450.590.63Key Ratios -> Efficiency
RatiosEfficiency2007-092008-092009-092010-092011-092012-
092013-092014-092015-092016-09TTMDays Sales
Outstanding21.9622.8124.624.8218.3419.0125.6630.5126.7927.
5919.71Days
Inventory7.097.316.856.955.173.264.376.35.816.226.98Payable
s
Period96.2589.7479.0281.375.4874.3874.5485.4585.57101.1172
.14Cash Conversion Cycle-67.19-59.61-47.58-49.53-51.96-
52.13-44.5-48.64-52.97-67.29-45.46Receivables
Turnover16.621614.8414.7119.919.214.2211.9613.6213.2318.5
2Inventory
Turnover51.4749.953.2852.5170.53112.1283.4557.9462.8258.6
452.31Fixed Assets
Turnover15.4215.1515.8616.8917.2613.4810.679.8210.858.718.
75Asset Turnover1.1310.991.061.131.070.890.830.890.70.69
Apple Income StatementAPPLE INC (AAPL) CashFlowFlag
INCOME STATEMENTFiscal year ends in September. USD in
millions except per share data.2012-092013-092014-092015-

092016-
09TTMRevenue156508170910182795233715215639218118Cost
of revenue87846106606112258140089131376134102Gross
profit686626430470537936268426384016Operating
expensesResearch and
development33814475604180671004510512Sales, General and
administrative100401083011993143291419414292Total
operating
expenses134211530518034223962423924804Operating
income552414899952503712306002459212Interest
Expense13638473314561705Other income
(expense)52212921364201828043472Income before
taxes557635015553483725156137260979Provision for income
taxes140301311813973191211568515762Net income from
continuing operations417333703739510533944568745217Net
income417333703739510533944568745217Net income
available to common
shareholders417333703739510533944568745217Earnings per
shareBasic6.385.726.499.288.358.43Diluted6.315.686.459.228.3
18.39Weighted average shares
outstandingBasic654464776086575354715406Diluted66176522
6123579355005434EBITDA58518570486181384505733337322
2
Apple Balance SheetAPPLE INC (AAPL) CashFlowFlag
BALANCE SHEETFiscal year ends in September. USD in
092016-09AssetsCurrent assetsCashCash and cash
equivalents1074614259138442112020484Short-term
investments1838326287112332048146671Total
cash2912940546250774160167155Receivables10930131021746
01684915754Inventories7911764211123492132Deferred income
taxes2583345343185546Other current
assets1422014421195652303321828Total current
assets57653732866853189378106869Non-current
assetsProperty, plant and equipmentGross property, plant and
equipment2188728519390154925761245Accumulated

Depreciation-6435-11922-18391-26786-34235Net property,
plant and equipment1545216597206242247127010Equity and
other
investments92122106215130162164065170430Goodwill113515
77461651165414Intangible assets42244179414238933206Other
long-term assets54785146376455568757Total non-current
assets118411133714163308201101214817Total
assets176064207000231839290479321686Liabilities and
stockholders' equityLiabilitiesCurrent liabilitiesShort-term
debt63081099911605Accounts
payable2117522367301963549037294Taxes
payable153512001209Accrued
liabilities8387521776892518122027Deferred
revenues59537435954889408080Other current
liabilities149274398498Total current
liabilities3854243658634488061079006Non-current
liabilitiesLong-term debt16960289875346375427Deferred taxes
revenues26482625303136242930Other long-term
liabilities1666437194567936510055Total non-current
liabilities19312397935684490514114431Total
liabilities5785483451120292171124193437Stockholders'
equityCommon stock233132741631251Additional paid-in
capital1642219764Retained
earnings101289104256871529228496364Accumulated other
comprehensive income499-4711082-345634Total stockholders'
equity118210123549111547119355128249Total liabilities and
stockholders' equity176064207000231839290479321686
Apple Cash FlowAPPLE INC (AAPL) Statement of CASH
FLOWFiscal year ends in September. USD in millions except
per share data.2012-092013-092014-092015-092016-
09TTMCash Flows From Operating ActivitiesNet
income417333703739510533944568745217Depreciation &
amortization327767577946112571050510538Deferred income
taxes440511412347138249384798Stock based
compensation174022532863358642104388Accounts receivable-

5551-2172-42326111095-1104Inventory-15-973-76-238217-
261Accounts payable446723405938540017915103Other
working capital800728354175874-2619-2878Other non-cash
items-384Net cash provided by operating
activities508565366659713812666582465417Cash Flows From
Investing ActivitiesInvestments in property, plant, and
equipment-8295-8165-9571-11247-12734-12456Acquisitions,
net-350-496-3765-343-297-228Purchases of investments-
151232-148489-217128-166402-143816-150126Sales/Maturities
of
investments112805124447208111121985111794118709Purchase
s of intangibles-1107-911-242-241-814-506Other investing
activities-48-16016-26-110-42Net cash used for investing
activities-48227-33774-22579-56274-45977-44649Cash Flows
From Financing ActivitiesDebt issued1689618266Debt
repayment-2500Common stock
issued665530730543495494Common stock repurchased-22860-
45000-35253-29722-33710Dividend paid-2488-10564-11126-
11561-12150-12311Other financing activities125-381-
419285552339424441Net cash provided by (used for) financing
activities-1698-16379-37549-17716-20483-21086Net change in
cash9313513-4157276-636-318Cash at beginning of
period98151074614259138442112016689Cash at end of
period107461425913844211202048416371Free Cash
FlowOperating cash
flow508565366659713812666582465417Capital expenditure-
9402-9076-9813-11488-13548-12962Free cash
flow414544459049900697785227652455
Caterpillar (CAT)Caterpillar (CAT)
Stock201620172018201920202021Revenues3853740078.484168
1.619243348.88396845082.8393267246886.1528997888Cost of
Goods
Sold2830928054.93629177.1334430344.218777631557.9875287
Expenses46866813.34167085.8752647369.310274567438.66848
890887736.2152284652Research and

Income4985210.20245418.6104965635.354915846086.1833091
0726329.6306414715Net Interest Expenditure35900000Pre-Tax
Income1395210.20245418.6104965635.354915846086.1833091
0726329.6306414715Taxes1921563.060721625.58314881690.60
64747521825.85499273221898.8891924414Net Income-
673647.141683793.02734723944.7484410884260.32831637544
30.74144903Earnings Per Share-
0.11472602746.24510561646.49490984116.75470623477.29508
273357.5868860429Shares
Outstanding584584584584584584Caterpillar (CAT)
Debt/Assets0.490.52Debt/Equity2.82.39Current Assets/Current
Liability1.222.05EBITDA/Interest3.88Debt/EBITDA8.619.73Ca
sh Flow Ops/Total Debt0.150.12
CAT Income StatementCATERPILLAR INC (CAT)
CashFlowFlag INCOME STATEMENTFiscal year ends in
December. USD in millions except per share data.2012-122013-
122014-122015-122016-
12TTMRevenue658755565655184470113853738537Cost of
revenue470554072739767337422830928309Gross
expensesResearch and
development246620462135216519511951Sales, General and
administrative591955475697519946864686Other operating
expenses186217082257264930933093Total operating
income8573562853283256498498Interest
Expense467465484507505505Other income (expense)130-
35239106146146Income before
taxes252813191380742192192Other income14-68-6-6Net
income from continuing operations5722380337112113-59-
59Other-41-14-16-11-8-8Net income5681378936952102-67-
67Net income available to common
shareholders5681378936952102-67-67Earnings per

shareBasic8.715.875.993.54-0.11-0.11Diluted8.485.755.883.5-
0.11-0.11Weighted average shares
4584EBITDA1231394079354699542744274
CAT Balance SheetCATERPILLAR INC (CAT) CashFlowFlag
BALANCE SHEETFiscal year ends in December. USD in
122016-12AssetsCurrent assetsCashCash and cash
equivalents54906081734164607168Total
cash54906081734164607168Receivables1895217176167641568
614503Inventories15547126251220597008614Deferred income
taxes1547155317391526Prepaid
expenses98890081810461682Total current
assets4252438335388673441831967Non-current assetsProperty,
plant and equipmentGross property, plant and
Depreciation-13471-14241-14995-15887-16618Net property,
plant and equipment1646117075165771609015322Equity and
other
investments272272257246Goodwill69426956669466156020Inta
ngible assets40163596307628212349Deferred income
taxes2011594140416542790Other long-term
assets1713018068178061665316256Total non-current
assets4683246561458144407942737Total
assets8935684896846817849774704Liabilities and stockholders'
equityLiabilitiesCurrent liabilitiesShort-term
debt1239111031115011284613965Accounts
liabilities2975527297278772630326132Non-current
liabilitiesLong-term debt2775226719277842517022750Capital
leases7768Pensions and other
benefits110856973896388439357Minority
interest5067807676Other long-term

liabilities31823029323132193184Total non-current
equityCommon stock44814709501652385277Retained
earnings2955831854338873420827377Treasury stock-10074-
11854-15726-17640-17478Accumulated other comprehensive
income-6433-3898-6431-6997-2039Total stockholders'
CAT Cash FlowCATERPILLAR INC (CAT) Statement of
CASH FLOWFiscal year ends in December. USD in millions
except per share data.2012-122013-122014-122015-122016-
income5722380337112113-59-59Depreciation &
amortization281330873163304630343034Investment/asset
impairment charges580595595Inventory-
11492658101227411091109Accounts payable-1868134222-
1165-200-200Accrued liabilities183-108891-588-909-909Other
working capital-849135-584487628628Other non-cash items-
19148255350814101410Net cash provided by operating
equipment-1726-1924-1840-1873-1819-1819Property, plant, and
equipment reductions1117844904760899899Acquisitions,
net581170169178-191-191Purchases of investments-12412-402-
825-885-391-391Sales/Maturities of
investments9433449810351694694Other investing activities-
3183-4183-2845-2048-952-952Net cash used for investing
activities-6190-5046-3627-3517-1760-1760Cash Flows From
Financing ActivitiesDebt
issued16015932810649513251155115Debt repayment-11099-
10870-9248-8292-6565-6565Common stock issued5212823933-
23-23Common stock repurchased-2000-4238-2025Dividend
paid-1617-1111-1620-1757-1799-1799Other financing
activities1981412223039160160Net cash provided by (used for)
financing activities3549-4511-2996-3870-3112-3112Effect of

exchange rate changes-167-43-174-169-28-28Net change in
cash24335911260-881708708Cash at beginning of
period549060817341646071687168Free Cash FlowOperating
cash flow5241101918057667556085608Capital expenditure-
5076-4446-3379-3261-2928-2928Free cash
flow16557454678341426802680
Consolidated Edison (ED)Consolidated Edison (ED)
Stock201620172018201920202021Revenues120751255813060.3
213582.732814126.04211214691.08379648Cost of Goods
Sold30888790.69142.2249507.912969888.229478410283.75865
7536Selling, General & Administrative
Expenses51962134.862220.25442309.0645762330.79694848242
4.0288264192Research and development121600000Operating
Income25751632.541697.84161765.7552641907.015685121983.
2963125248Net Interest Expenditure63200000Pre-Tax
Income19431632.541697.84161765.7552641907.015685121983.
2963125248Taxes698489.762509.35248529.7265792572.104705
536594.9888937574Net
Income12451142.7781188.489121236.02868481334.910979584
1388.3074187674Earnings Per
Share4.12251655633.78403311263.93539443714.09281021464.
42023503174.597044433Shares
Outstanding302302302302302302Consolidated Edison (ED)
Liability0.890.75EBITDA/Interest5.51Debt/EBITDA4.13.29Cas
h Flow Ops/Total Debt0.2244.04
ED Income StatementCONSOLIDATED EDISON INC (ED)
122014-122015-122016-
revenue388740544513371630883088Gross
profit830183008406883889878987Operating expensesOperation
and maintenance318231373294334432693269Depreciation and

amortization95510241071113012161216Other operating
income233922442209242725752575Interest
Expense604719592656702702Other income
(expense)61343277070Income before income
taxes600476568605698698Net income from continuing
operations114110621092119312451245Net
income114110621092119312451245Preferred dividend3Net
income available to common
2302EBITDA330032813323358438613861
ED Balance Sheet CONSOLIDATED EDISON INC (ED)
CashFlowFlag BALANCE SHEETFiscal year ends in December.
USD in millions except per share data.2012-122013-122014-
122015-122016-12AssetsCurrent assetsCashCash and cash
cash3941001699944776Receivables19662005205818821827Inve
ntories330363372350339Prepaid
expenses159136163177159Other current
assets602386562483305Total current
assets34513891385438363406Non-current assetsProperty, plant
and equipmentGross property, plant and
Depreciation-6641-7162-7705-8139-8681Net property, plant
and equipment2693928436298273220935216Equity and other
investments4674618168841921Goodwill429429429429428Intan
gible assets2432124Regulatory
assets97057201915680967024Other long-term
assets3775836756404544180644849Total

debt12451936136022681093Accounts
payable12151017101910081147Taxes
liabilities39454730378147203843Non-current liabilitiesLong-
term debt1006210489116311200614735Capital
leases21Deferred taxes
liabilities837284669076953710205Pensions and other
benefits46781727391429111847Regulatory
liabilities12021728199319771905Minority interest998Other
long-term liabilities10791261132814301414Total non-current
liabilities2934028402317323259033957stockholders'
earnings79978338869191239559Treasury stock-1037-1034-
1032-1038-1038Accumulated other comprehensive income-114-
86-106-95-110Total stockholders'
ED Cash FlowCONSOLIDATED EDISON INC (ED) Statement
of CASH FLOWFiscal year ends in December. USD in millions
amortization95510241071113012161216Amortization of debt
discount/premium and issuance costs4210102-52-210-
210Deferred income taxes58440518653783783Accounts
receivable-99-294496-69-69Inventory26-33-10221313Prepaid
expenses-1423-27-142020Accounts payable111-118-9-
792929Accrued liabilities-796-11341414Interest payable-796-
11341414Income taxes payable-26314-404-1022Other working
capital-19149634255380380Other non-cash items-88-

equipment-2069-2538-2419-3054-3680-3680Purchases of
investments-337-175-283-299-1478-1478Sales/Maturities of
investments3093108Other investing activities-147-39-165-
304182182Net cash used for investing activities-2523-2659-
2759-3657-4976-4976Cash Flows From Financing
ActivitiesDebt issued93918311850114725902590Debt
repayment-305-709-480-500-735-735Common stock
issued702702Redemption of preferred stock-239Cash dividends
paid-712-721-739-733-763-763Other financing activities-13-14-
678715-449-449Net cash provided by (used for) financing
activities-330387-4762913451345Net change in cash-
25428025249-172-172Cash at beginning of
period394674699948772772Free Cash FlowOperating cash
flow259925522831327734593459Capital expenditure-2069-
2538-2419-3054-3680-3680Free cash flow53014412223-221-
221Supplemental schedule of cash flow dataCash paid for
income taxes4669633-36-180-180Cash paid for
interest571574561597664664
Northern Trust (NTRS)Northern Trust (NTRS)
Stock201620172018201920202021Revenues49625160.485366.8
9925581.5751685804.838174726037.0317017088Cost of Goods
Sold18773612.3363756.829443907.10261764063.386722304422
5.9221911962Selling, General & Administrative Expenses-
1877877.2816912.372864948.86777856957.7982988288996.110
230782Research and development000000Operating
Income4962670.8624697.696896725.60477184783.6531535872
814.9992797307Net Interest Expenditure000000Pre-Tax
Income4962670.8624697.696896725.60477184783.6531535872
814.9992797307Taxes485201.25872209.3090688217.681431552
235.0959460762244.4997839192Net
Income1032469.60368488.3878272507.923340288548.5572075
11570.4994958115Earnings Per

Share4.50655021832.05067109172.13269793542.21800585282.
3954463212.4912641738Shares
Outstanding229229229229229229Northern Trust (NTRS)
Liability-2.49EBITDA/Interest--Debt/EBITDA-6.07Cash Flow
Ops/Total Debt0.180.18
NTRS Income StatementNORTHERN TRUST CORP (NTRS)
122014-122015-122016-
12TTMRevenue389639234331470349624962Operating
expensesCompensation and
benefits152615071726176918771877Advertising and
promotion88938484Depreciation and amortization201199Other
expenses-1526-1507-1833-1873-1970-1970Total operating
expensesOperating
income389639234331470349624962Nonoperating
incomeInterest expense297177181154182182Other income
(expense)297177181154182182Total nonoperating income,
netIncome before taxes389639234331470349624962Provision
for income taxes305351378491485485Other income (expense)-
2904-2844-3141-3238-3445-3445Net
income68772881297410321032Preferred dividend10232323Net
income available to common
9229
NTRS Balance SheetNORTHERN TRUST CORP (NTRS)
CashFlowFlag BALANCE SHEETFiscal year ends in December.
USD in millions except per share data.2012-122013-122014-
122015-122016-12AssetsCash and cash
equivalents3017635289179793698610133Federal funds
sold6153018449161428648Receivables20491355156921571044I

nvestments3103430713337343756744501Loans29207291073137
33298733661117987Property and
equipment470455444447467Goodwill538502533526519Other
assets393047075865446449545940Total
assets97464102659109946116750123927123927Liabilities and
stockholders'
equityLiabilitiesDeposits81408857179075796869101652Short-
term borrowing1598Long-term
debt44723034507472018214Other
equityPreferred stock388388882Common
stock4097102409409409Additional paid-in
earnings6703762582438908Treasury stock-314-705-1034-
1094Accumulated other comprehensive income-283-320-373-
370Total stockholders' equity75277102844987069770Total
liabilities and stockholders'
equity97464102659109946116750123927
NTRS Cash FlowNORTHERN TRUST CORP (NTRS)
Statement of CASH FLOWFiscal year ends in December. USD
in millions except per share data.2012-122013-122014-122015-
122016-12TTMCash Flows From Operating ActivitiesNet
income68773181297410321032Provision for credit
losses25206-43-26-26Depreciation &
discount/premium and issuance costs-12453553101101Deferred
tax (benefit) expense8067-36-146-176-176Investments (gains)
losses224033Receivable-42-20621-16-129-129Accrued
liabilities-10-11-4-800Interest payable-10-11-4-800Income
taxes payable18-3255207-129-129Other operating activities-
214-83-287470460460Net cash provided by operating
activities814839936183415101510Cash Flows From Investing
ActivitiesChange in deposits with banks3722-60743297843-
2218-2218Change in federal funds sold and securities purchased
under resale agreements60-469-533-550-373-373Sales/maturity

of investments234041431016384152041534415344Purchases of
investments-23345-13884-19807-19566-23315-23315Property,
and equipments, net-73-92-82-98-111-111Acquisitions and
dispositions-17-17Other investing activities-2141525-7472-
2734498498Net cash used for investing activities1628-5683-
8212-6901-10192-10192Cash Flows From Financing
ActivitiesChange in deposits-
127029398488810667376737Change in federal funds purchased-
534402-64-920-220-220Debt issued500750Debt repayment-924-
804-640-231-7-7Preferred stock issued388494494Repurchases
of treasury stock-162-310-481-497-411-411Dividend paid-354-
221-303-348-356-356Other financing activities-3291632-
314242513001300Net cash provided by (used for) financing
activities-307343887074853475377537Effect of exchange rate
changes68-13591-745959Net change in cash-563-590-1123394-
1086-1086Cash at beginning of
period375331623051644553325332Free Cash FlowOperating
cash flow814839936183415101510Capital expenditure-312-385-
410-434-473-473Free cash
flow502454526140110371037Supplemental schedule of cash
flow dataCash paid for income taxes188263279390754754Cash
paid for interest307232186162182182
Macy's (M)Macy's (M)
Stock201620172018201920202021Revenues2707928162.162928
8.646430460.19225631678.5999462432945.7439440896Cost of
Goods
Sold1649619713.51220502.0524821322.134579222175.0199623
Expenses82564787.56724979.0698885178.232683525226.96899
112965436.0477507748Research and
Income20393661.08083807.5240323959.824993284276.610992
74244447.6754324521Net Interest Expenditure36100000Pre-
Tax
Income16783661.08083807.5240323959.824993284276.610992

74244447.6754324521Taxes6081098.324241142.25720961187.9
474979841282.98329782271334.3026297356Net
Income10702562.756562665.26682242771.8774952962993.627
69491973113.3728027165Earnings Per
Share3.21321321327.69596564568.00380427158.32395644238.
98987295779.349467876Shares
Outstanding333333333333333333Macy's (M) BondFirmInd
AvgDebt & Coverage Ratios
Debt/Assets32.47Debt/Equity158.94Current Assets/Current
Liability1.35EBITDA/Interest4.46Debt/EBITDA2.51Cash Flow
Ops/Total Debt
M Income StatementMACY'S INC (M) CashFlowFlag INCOME
STATEMENTFiscal year ends in January. USD in millions
revenue165381672516863164961562115621Gross
expensesSales, General and
administrative848284408355825682658265Other operating
income266126782800203913151315Interest
Expense437390395363384384Other income (expense)-1222-
1522121Income before income
taxes767804864608341341Minority interest-2-8-8Other income-
2-8-8Net income from continuing
operations1335148615261070611611Other288Net
income1335148615261072619619Net income available to
common shareholders1335148615261072619619Earnings per
1311EBITDA358837003821310223942394
M Balance SheetMACY'S INC (M) CashFlowFlag BALANCE
SHEETFiscal year ends in January. USD in millions except per

share data.2013-012014-012015-012016-012017-
01AssetsCurrent assetsCashCash and cash
cash18362273224611091297Receivables371438424558522Inven
tories53085557551655065399Prepaid
expenses361420493479408Total current
assets78768688867976527626Non-current assetsProperty, plant
and equipmentLand17361696166416291541Fixtures and
equipment49094811482849104541Other
properties74987489690263965791Property and equipment, at
cost1414313996133941293511873Accumulated Depreciation-
5947-6066-5594-5319-4856Property, plant and equipment,
net81967930780076167017Goodwill37433743374338973897Int
angible assets561527496514498Other long-term
assets1311512946127821292412225Total
debt12446376636300Capital leases69Accounts
payable22042437252623401423Deferred income
taxes407400362Taxes payable550519483411352Accrued
liabilities5425202089625Other current
liabilities50755726553657285647Non-current liabilitiesLong-
term debt68066728726569666535Capital leases2927Deferred
taxes liabilities12381273108114771443Minority interest3-
1Other long-term liabilities18211658220121231877Total non-
current liabilities9865965910547105989881Total
earnings51086235734063346088Treasury stock-2002-1847-
1942-1665-1489Accumulated other comprehensive income-931-
665-1072-1043-896Total stockholders'
equity60516249537842504323Total liabilities and stockholders'
equity2099121634214612057619851

M Cash FlowMACY'S INC (M) Statement of CASH
FLOWFiscal year ends in January. USD in millions except per
share data.2013-012014-012015-012016-012017-01TTMCash
Flows From Operating ActivitiesNet
discount/premium and issuance costs-16-8-5-14-14-
14Investment/asset impairment charges58887288479479Stock
based compensation616273656161Inventory-191-24940-
60107107Prepaid expenses75-2-3-8-8Accounts payable23101-
17-78-132-132Income taxes payable-16-135-36-69125125Other
working capital-641868-279-375-375Other non-cash items-111-
equipment-698-607-770-777-596-596Property, plant, and
equipment reductions66132172204673673Acquisitions, net-
212Other investing charges-231-313-372-307-264-264Net cash
used for investing activities-863-788-970-1092-187-187Cash
Flows From Financing ActivitiesShort-term borrowing-
8824Long-term debt issued1000400104449922Long-term debt
repayment-1803-124-870-152-751-751Common stock
issued2343152581633636Repurchases of treasury stock-1397-
1571-1901-2001-316-316Cash dividends paid-324-359-421-456-
459-459Other financing activities-11-9124-826262Net cash
provided by (used for) financing activities-2389-1324-1766-
2029-1426-1426Net change in cash-991437-27-1137188188Cash
at beginning of period282718362273224611091109Cash at end
of period183622732246110912971297Free Cash FlowOperating
cash flow226125492709198418011801Capital expenditure-942-
863-1068-1113-912-912Free cash
flow131916861641871889889Supplemental schedule of cash
flow dataCash paid for income taxes738835834635352352Cash
paid for interest585388413383396396
FIN-640

1
Milestone One (Revised)
Dr. Shaikh A. Hamid
Cheng Qu
October 18, 2017
Question: Analyzing each company this time and I did only do
APPL last time.Financial markets
Five year performance of domestic economy
Apple is a global design and sales firm of mobile and media
equipment. Understanding the performance of domestic
economy, it has been less uniform with considerable
fluctuations (Apple Inc, 2017). On the other hand, Caterpillar is
a company dealing with mining and construction machines
based out of America and it has seen a decline in the income
and returns. Edison is a joint company into holdings and a slight
increase in the revenue can be seen. Similar to Edison, Northern
Trust is also a financial holding company that has seen gradual
increase in income. Messi is a chain of retail stores that has
seen a decline lately.
Market performance
Apple has minimized its investments and also purchase of
intangibles. This has given scope for increase in stock value and
share price. It is a sad state with respect to Caterpillar’s
performance since the market has rapidly affected the business
with trade rates. ED and Northern Trust performed quite
similarly and their market performances were carefully decided
so that they don’t end in losses. Debts, stocks and other market

fluctuations have affected the market performance of Messi.
Impact and current macroeconomic data
It is essential to understand the present macroeconomic data and
impacts. ED and Northern Trust have positive impacts in the
productivity, interest rate, stock value and exchange rate.
Messi, Caterpillar and Apple do not have positive impacts.
Company valuation
Financial items and key ratios
Upon evaluating the financial report of Apple as per 30 Sep
2016, the profit margin has touched 21.19% out of which Apple
will gain 21.19% of sales and this should be allotted to the
shareholders. This implies that the profit margin is quite high.
The debt asset turnover has been set to 0.6 and this is above the
industry average of 0.5 (Reuters.com, 2017). Therefore, it could
be said that there is high leverage of its assets. Current ratio is
also a key ratio of Apple. It is marked as 1.35 and this is shown
as a good sign as Apple can efficiently deal with debts at this
stage. The efficiency ratio of Apple has seen a gradual rise in
efficiency and is at 27.59% which implies strong efficiency.
The key ratios have notified the deteriorating health of the firm
in the recent annual report.
In the case of Caterpillar, it has recorded low debt/ assets ratio
at 0.49 while the industry average is 0.52. The current assets are
far lesser at 1.22 when compared to 2.05. Edison has performed
well in its financial health ratios. For instance, the equity ratio
is 1.11 while industry average is 0.93. The same case applies to
cash flow ratio. Similar to Edison, Northern Trust has also
achieved a rise in debt equity ratio at 0.92 when industry
average is 0.65. The debt asset margin is 0.07 which is 70% and
20% lesser than the industry average. This is a fair ratio. Messi
has recorded low ratios when compared to industry average.
Intrinsic value of assets
The net turnover of assets belonging to Apple Inc was 0.7 times.

This also implies that the turnover is less for a $0.7 USD
invested (Apple Inc, 2017). This is below average and cannot be
treated as an effective option. Looking into the financial health
of the assets, the accounts received have been low and the
inventory efficiency is also low. The total assets possessed by
Apple Inc have come to as low as 33.22% as on Sep 2016
(Reuters.com, 2017). This is again instructing a poor financial
health of the firm. The net current liabilities have been under
control. The turnover from fixed asset is 8.75 and this is also
low when compared with the market ratios. The analysis shows
that the intrinsic value of such assets is low. The fixed asset
values of Northern Trust and Edison are lesser and have
experienced fluctuations. Caterpillar has seen a decrease in the
asset value and cash flow has also deteriorated. The asset value
of ED is moderate and Northern Trust has an increase in
possession of assets. Fluctuations are high in Messi similar to
Caterpillar. Stakeholders
5 key stakeholders
There are 5 major stakeholders associated with the firm and
they directly influence the development of firm. These are given
below.
Stakeholders
Needs based on portfolio
Apple
Value addition
XYZ tech company
Increase in investments and value of cash equivalents
Government
Income tax
Financial Industry regulatory authority
Securities market regulations
Bank
Profit growth
All the major stakeholders are keen about the financial growth

and performance of the firm that can add benefits to them
(Apple Inc, 2017). Since Apple is a technology company that
has gained global sales and recognition, these stakeholders play
critical roles in the operations. These stakeholders apply for
other companies too. The financial holding companies like
Northern Trust and Edison have customers as stakeholders and
other companies that act as investors. Companies like Messi and
Caterpillar have third party companies as their investors and
they look forward for better cash equivalents.
Common stockholders
The objective of common stockholders of the firms is to
maximize the return on investments from the firm. Apple has
numerous stockholders and the financial performance has a
direct impact on the stock value and this demands the firm to
focus on the financial development.
To determine the necessary rate of return, the following formula
is applied:
ri= rf + βi * (Rmkt - rf )
Elements
Input data
Risk free rate rf
2%
Company’s beta βi
1.28
Market premium Rmkt - rf
6%
Applying the values as in table to the formula above, the rate of
return is 2% + 1.28*6% = 9.68%
References
Apple Inc (2017). Morningstar. Retrieved 18 October, 2017
fromhttp://www.morningstar.com/stocks/XBUE/AAPL/quo
te.html
Reuters.com. (2017). Company Profile: Apple Inc. (M.N).

Retrieved 18 October, 2017, from
http://www.reuters.com/finance/stocks/companyProfile?symbol
=M.N

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