- Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California. It licenses its Oracle Database software and provides cloud services including SaaS, PaaS, and IaaS.
- To value Oracle stock, the author calculates the discount rate using the CAPM model with a risk-free rate of 3.4%, market risk premium of 3.1%, and beta of 1.18, giving a discount rate of 7.67%.
- The author then values Oracle using the dividend discount model at $19.16 per share, capitalized earnings model at $29.80 per share, and H-model, comparing the results.
The newsletter provides an overview of the Indian stock market and economy in May 2021. It notes that most equity indices rallied significantly over the month, with gains of 7-10%. Banking and financial stocks saw major recoveries, while metal stocks had phenomenal rises. The newsletter suggests the market is no longer fearful of rising COVID cases and sees signs of sector rotation. It provides recommendations on positioning equity investments and strategies for the current situation. The newsletter also includes sections on personal finance topics like emergency funds, health insurance, and term life insurance.
Welcome to the 2021 Indigo’s C-Level Salary Guide. successful salary planning requires a thorough understanding of factors that influence the amount required to secure the appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper compensation.
Forming an effective compensation strategy is not as easy as it appears. Some managers might use
their instinct to throw a dollar figure at an employment contract, but successful salary
planning requires a careful understanding of factors that influence the amount required to secure
appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper
compensation. In addition to salary tables, this salary guide provides a high-level overview of hiring,
a look at employment in IT, and several key hiring strategies for 2019.
Welcome to the 2019 Indigo’s C-Level Salary Guide. Forming an effective compensation strategy is not as easy as it appears. Some managers habitually throw a dollar figure at an employment contract. However, successful salary planning requires a thorough understanding of factors that influence the amount required to secure the appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper compensation. In addition to salary tables, this salary guide provides a high-level overview of hiring, a look at employment in IT, and several key hiring strategies for 2020.
The document summarizes the results of a survey of over 700 senior managers in financial services and commerce & industry in Sydney about their hiring outlook for 2011.
In financial services: 83% were confident in Australia's economic outlook, 89% expected revenue growth, 88% planned to hire with 37% definitely hiring in the next 6-12 months, and 72% expected salary increases with bonuses similar to 2010 levels. The main challenge was expected to be talent retention.
In commerce & industry: Fewer (66%) were completely confident economically but 80% still expected revenue growth, 92% planned to hire with 63% definitely hiring, 69% expected salary increases and bonuses higher than 2010, and talent retention was also the
Newfound Research was founded in 2008 based on the premise of capital preservation for investors. The company believes in portfolio processes that are simple, consistent, and thoughtfully designed, with managing risk being paramount. Newfound Research focuses on defensive, simple, consistent, and thoughtful investment philosophies and strategies. The documents provides an overview of Newfound Research's investment philosophy and approach to risk management. It also discusses concepts like asset bubbles, bond valuations, equity valuations, and the benefits of diversification in periods of low expected future returns for traditional stock and bond portfolios.
In a lower expected return environment, should we just accept lower withdrawal rates?
In this presentation, we outline 8 simple ideas that when used together can potentially help make up the return gap.
The newsletter provides an overview of the Indian stock market and economy in May 2021. It notes that most equity indices rallied significantly over the month, with gains of 7-10%. Banking and financial stocks saw major recoveries, while metal stocks had phenomenal rises. The newsletter suggests the market is no longer fearful of rising COVID cases and sees signs of sector rotation. It provides recommendations on positioning equity investments and strategies for the current situation. The newsletter also includes sections on personal finance topics like emergency funds, health insurance, and term life insurance.
Welcome to the 2021 Indigo’s C-Level Salary Guide. successful salary planning requires a thorough understanding of factors that influence the amount required to secure the appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper compensation.
Forming an effective compensation strategy is not as easy as it appears. Some managers might use
their instinct to throw a dollar figure at an employment contract, but successful salary
planning requires a careful understanding of factors that influence the amount required to secure
appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper
compensation. In addition to salary tables, this salary guide provides a high-level overview of hiring,
a look at employment in IT, and several key hiring strategies for 2019.
Welcome to the 2019 Indigo’s C-Level Salary Guide. Forming an effective compensation strategy is not as easy as it appears. Some managers habitually throw a dollar figure at an employment contract. However, successful salary planning requires a thorough understanding of factors that influence the amount required to secure the appropriate talent.
The market for talent in the tech field is tighter than others, heightening the importance of proper compensation. In addition to salary tables, this salary guide provides a high-level overview of hiring, a look at employment in IT, and several key hiring strategies for 2020.
The document summarizes the results of a survey of over 700 senior managers in financial services and commerce & industry in Sydney about their hiring outlook for 2011.
In financial services: 83% were confident in Australia's economic outlook, 89% expected revenue growth, 88% planned to hire with 37% definitely hiring in the next 6-12 months, and 72% expected salary increases with bonuses similar to 2010 levels. The main challenge was expected to be talent retention.
In commerce & industry: Fewer (66%) were completely confident economically but 80% still expected revenue growth, 92% planned to hire with 63% definitely hiring, 69% expected salary increases and bonuses higher than 2010, and talent retention was also the
Newfound Research was founded in 2008 based on the premise of capital preservation for investors. The company believes in portfolio processes that are simple, consistent, and thoughtfully designed, with managing risk being paramount. Newfound Research focuses on defensive, simple, consistent, and thoughtful investment philosophies and strategies. The documents provides an overview of Newfound Research's investment philosophy and approach to risk management. It also discusses concepts like asset bubbles, bond valuations, equity valuations, and the benefits of diversification in periods of low expected future returns for traditional stock and bond portfolios.
In a lower expected return environment, should we just accept lower withdrawal rates?
In this presentation, we outline 8 simple ideas that when used together can potentially help make up the return gap.
Corporate Accounting; Equity and Liability, Cash Flow Statement, Income and C...Peachy Essay
For full solution please visit https://peachyessay.com/sample-essay/corporate-accounting-equity-and-liability-cash-flow-statement-income-and-corporate-tax-for-mining-and-metals-industry/
Laurentian Bank Securities - Economic Research and Strategy Mark MacIsaac
LBS Asset Allocation December Update:
Global equities made yet another high this month as global economic data remained robust and economic growth prospects kept being upgraded.
Hays 2016 Salary and HR Report in the Gulf CountriesEndri Bahja
The Accountancy & Finance sector saw positive hiring in 2015, particularly in legal and multi-national companies. While salaries remained largely stable, audit professionals saw increases. Half of employees received a salary increase in 2015, most commonly due to individual performance or promotion. Looking to 2016, 60% of employees anticipate changing employers to progress their careers or increase salaries, though many will stay for career progression opportunities. Employers seek experienced regional professionals to strengthen their businesses.
New highs in the equity markets prompt the questions, "Is it a good time to invest?" and "What is a good strategy?" Read on to see what Cornerstone Wealth Management's Chief Investment Officer Alan Skrainka, CFA, has to say.
The document discusses the author's analysis of various stock portfolios from February 2015 to December 2015. For each month, the author calculates an equal weighted portfolio, global minimum variance portfolio, targeted return portfolio, and tangency portfolio using stock data from Apple, Exxon Mobil, Microsoft, and Alphabet. The author then analyzes the expected returns and risks of each portfolio to determine which would provide the highest utility for a risk-seeking investor. The optimal portfolio choice depends on the monthly returns and whether a tangency portfolio can be computed given the risk-free rate.
Fall 2015 AREIT Board Meeting Presentation FINALZi Chong
The document summarizes an investment track board meeting that included:
- Introductions of the investment team
- A review of the fund's objective to outperform the MSCI US REIT Index with a focus on value preservation given expectations for slower economic growth and continued volatility
- A domestic and global macroeconomic view noting a stable but slowing US economy alongside risks from China, commodities, and Europe
- An investment strategy of underweighting sectors most affected by global uncertainty while overweighting sectors driven by strong US fundamentals
- Analysis of property sector fundamentals and recommendations to underweight hospitality and remain neutral on other sectors
- Discussions of specific company stock recommendations like DCT Industrial, Regency Centers,
Market Twitter June 2017 – Narnolia Securities Limitednarnoliasecurities
We are pleased to share with you the JUNE 2017 edition of the Market Twitter . Valuable Inputs by Sri Shailendra Kumar, CIO, Narnolia Securities Ltd & Sri Dhirendra Kumar, CEO , Value Research. Please share this valuable informative market twitter with your Investors. Visit https://www.narnolia.com/.
At Quantic Asset Management, our clients’ needs and interests always come first. This is why we constantly strive to provide superior investment advice and returns, by directing our global resources to help you achieve the best possible financial future. We are committed to help you find the optimum investment for your requirements, regardless of the stage of life that you are in. We take great pride in our uncompromising determination to achieve excellence. The key to our success lies in finding the right approach to navigate through the noise in financial markets and filter out clear signals in order to present our clients with the most valuable investment advice. Quantic Asset Management is a EU-based investment specialist, with capabilities that span multi-asset and alternative investments.
Top 10 Reasons to Allocate to Microcap In PortfoliosIan Cassel
The document provides 10 reasons to allocate to microcap stocks in portfolios. It summarizes that microcaps have historically posted the best long-term returns compared to other market cap classes. It also notes that microcaps remain inefficient due to low analyst coverage and can provide diversification benefits through lower correlation to other assets. The document argues that microcaps are less susceptible to economic downturns and have historically performed well following interest rate hikes.
Review of Residential Real Estate Analysis Valuation MethodologiesTroy Adkins
The purpose of this presentation is to provide an overview of the traditional residential real estate analysis valuation methodologies and to provide an overview of two proprietary residential real estate analysis valuation methodologies that were developed by the founder of Adkins Capital Management. This presentation provides an overview of the following methodologies:
1) cost-based method
2) sales-based method
3) expense-based method
4) finance-based method
- The Indian stock market rose last week as the rupee stabilized around 65 levels against the dollar due to measures by the new RBI governor to provide short-term support to the currency.
- Factory activity in India contracted for the first time in over four years in August, while euro zone sentiment turned positive for the first time in more than two years.
- The report recommends remaining cautious on banking stocks and prefers sectors like IT, pharma, FMCG and telecom.
This document contains a summary of an analysis of Procter & Gamble (P&G) as an investment. Key points include:
1) Historical data was used to calculate metrics like WACC, beta, ROIC, and FCF to evaluate P&G's performance and forecast future growth assumptions.
2) Revenue growth rates of 1.8% for 2014 and 4.1% over 5 years were predicted, based on slower historical growth and anticipated challenges for P&G to generate significant new sales.
3) Calculations of metrics like ROIC and assumptions about ratios were used to project financials and value P&G, finding the stock could be a moderate buy given its valuation compared to
The document analyzes key financial metrics and statements for Apple Inc. over a 20-year period to determine its suitability as an investment. It calculates Apple's return on investment as 48,210%, beta as 1.29, cost of debt as 3.22%, and weighted average cost of capital as 7.16%. Similar metrics are provided for Microsoft, Walmart, Marriott, and Coca-Cola from 2019-2020. The analysis finds that Apple and Microsoft would provide the highest returns for investors.
The document discusses various ways to estimate growth rates for earnings, revenues, and operating income. It explores using historical growth rates, analyst estimates, and fundamentals-based approaches. The fundamentals-based approaches estimate growth based on reinvestment rates and returns on capital/equity. They note growth rates depend upon changing returns over time and how negative earnings, changing margins, and size effects are incorporated into the estimates.
The text file Ass1_Task1_POIs.txt can be used as the required te.docxssusera34210
The text file "Ass1_Task1_POIs.txt" can be used as the required text file for Task 1 of Assignment 1.
You are welcome to make your own text file.
In this file, each row is a building. There are 3 numbers in each row.
The first number is the type of building.
The next 2 numbers are the coordinates of the building (i.e. an x value and a y value).
The x and y values are between 0 and 100, to 2 decimal places. They are separated by a comma (",").
Below are the types of buildings that each ID number refers to:
1. Petrol Station
2. Taxi Stand
3. ATM
4. Hospital
5. Shopping Centre
Email me or post on the forums if you have any questions: [email protected]
TEMPLATE
Summary Report for CBI for the Canadian Expansion
Recommended Capital Structured Approach and my Recommendation with Justification
As Competition Bikes, Inc. expands, I have been requested to look north towards Canada as a possible investiture of business assets into the Canadian Marketplace for possible expansion. Having done a thorough examination and looking over the numerous options that may allow you to further review the possible expansion into Canada; I have deliberated the resulting tabulations as the ones that may be your most optimal solutions, based on the present economy, our own financial standing and Canadian markets. It is important to remember that the allotment of time is a section of five years. Specifically those are Year 9 to Year 13. This is accompanied with the goal of amassing approximately $600,000 for expansion. Here are 6 possible options that I will offer.
1st Fund Expansion with 100% Issuance of Bonds valued at 9%
2nd Fund Expansion with 60% Issuance of Bonds valued at 9%, with an additional release of 40% of Common Stock.
3rd Fund Expansion with 40% Issuance of Bonds valued at 9%, with an additional release of 60% of Common Stocks.
4th Fund Expansion with 20% Issuance of Bonds, valued at 9%, with an additional release of 80% of Common Stocks.
5th Issue a joint Stock Option of 50% Preferred and 50% Common Stocks.
6th Take a Bank Loan with 6% Interest for 5 Years (Year 9 – 13) with minimal return over the duration of the loan.
Each one of these six suggestions has a positive and a negative. From the get-go, let’s immediately dismiss the 6th suggestion. A Bank Loan with almost no return for five years is a bad idea. We would be required to have a minimum balance, and that money could be much better spent elsewhere, investing it in our company for better productivity. Bank Loans almost always carry with them minimum requirements, or minimum balances; neither of which will benefit our company. As I see it, we have a pair of good options available to us. Choice number 5 and Choice number 4.
Having looked over all of the choices listed, if we take a long-term approach; it would seem that our Choice number 5 would seem the more viable for our growth and expansion. Although Choice number 4 would certainly offer us a nicer short term re ...
The quarterly letter provides an update on portfolio performance and the manager's views. It notes that portfolio performance remains healthy but expectations for future returns should be realistic given high valuations. Specifically, the manager expects the index to return 10-12% annually over the next 5 years as valuations decline from monetary policy changes and normalization in private markets. The manager prefers positions in private banks, life insurance, and select industries and remains underweight consumer and IT given rich valuations.
This document provides a valuation of Costco stock using several models. It begins by calculating the discount rate using the CAPM model, determining a risk free rate of 3.75% and market risk premium of 3.1% based on economic indicators. It then estimates Costco's beta to be 0.9 based on its defensive nature and stable earnings. This yields a discount rate of 6.54%. It then provides inputs for the valuation models such as a long term growth rate of 4.75% and dividend of $1.80. The document will value Costco using the dividend discount model, capitalized earnings model, and H-model.
During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
Lauren Kelley, CEO of OPEXEngine, presented on using benchmarks and peer comparisons to drive continuous improvement and top quartile performance. OPEXEngine is a leading benchmarking database for software companies, with data on over 1,000 customers ranging from $1M to $1B in revenue. Benchmarking against relevant peers allows companies to identify issues, set targets, and make incremental improvements to optimize growth, margins, and key metrics like the "Rule of 40". Kelley discussed common benchmarking use cases around improving efficiency, expanding margins, and maximizing returns on sales, marketing, and R&D investments.
1Analyzing the Financial Health of 3M CompanyThere are s.docxfelicidaddinwoodie
1
Analyzing the Financial Health of 3M Company
There are several relevant economic theories that can be used to better understand what has helped transform 3M Company into a successful multibillion dollar business, one of which is demand-side economics. This is a theory that argues that economic growth is best created by a high demand for products and services. In the case of 3M, the company has experienced significant growth since it was founded 115 years ago because of the existing demand for its products. If there were no demand for items like abrasives, adhesives, laminates, fire protection, and so on, then there would be no macroeconomic growth. If there were no macroeconomic growth, then there would be little microeconomic growth either, and 3M would suffer as a result of there being little demand for its products.
To analyze the company’s financial figures, I first needed to access the raw annual data that was provided through the company’s income statements. I did this by using the website Stock Analysis on Net, which provides annual data for the past five years. I was able to then export this data to Excel and calculate the different margins and ratios using a variety of formulas that interacted with the data. Having this raw data in Excel form made it easy to create the necessary formulas and then apply them to each year because I could simply calculate a ratio once and then apply the formula to the remaining years in the income statement.
I was able to determine the adjusted current ratio by dividing the adjusted current assets by the adjusted current liabilities. This figure is similar to the quick ratio in the sense that assets are being compared to liabilities and a higher ratio is going to indicate the company is in a better position. From 2008 to 2017, 3M company had an adjusted current ratio that ranged from 1.54 to 2.25. Its peak ratio of 2.25 was achieved during 2011 when it had $12.240 billion in adjusted current assets and $5.441 billion in adjusted current liabilities.
To find the quick ratio, I divided the total quick assets by the current liabilities. From 2010 to 2017, 3M Company had a quick ratio of 0.85 to 1.39 with the quick ratio being at a low point in 2015 and a high point in 2011 and 2012. The quick ratio can be used to measure how well a company can fulfill its short-term financial liabilities, so a larger quick ratio is better. If the quick ratio is under 1.0, this indicates the company has more current liabilities than quick assets. This was the case in 2015 when the company had $6.070 billion in assets and $7.118 in liabilities giving it a quick ratio of 0.85. The low point was a result of the company having a smaller than usual amount of cash and cash equivalents and marketable securities with $1.798 billion in cash and $118 million in securities.
In terms of working capital turnover ratio, I was able to find this figure by dividing the net sales by working capital. From 2011 to 2017, 3M Company ha ...
With 25 years of investment management experience I am excited to begin my own firm in order to grow and preserve the hard earned assets of my clients.
Corporate Accounting; Equity and Liability, Cash Flow Statement, Income and C...Peachy Essay
For full solution please visit https://peachyessay.com/sample-essay/corporate-accounting-equity-and-liability-cash-flow-statement-income-and-corporate-tax-for-mining-and-metals-industry/
Laurentian Bank Securities - Economic Research and Strategy Mark MacIsaac
LBS Asset Allocation December Update:
Global equities made yet another high this month as global economic data remained robust and economic growth prospects kept being upgraded.
Hays 2016 Salary and HR Report in the Gulf CountriesEndri Bahja
The Accountancy & Finance sector saw positive hiring in 2015, particularly in legal and multi-national companies. While salaries remained largely stable, audit professionals saw increases. Half of employees received a salary increase in 2015, most commonly due to individual performance or promotion. Looking to 2016, 60% of employees anticipate changing employers to progress their careers or increase salaries, though many will stay for career progression opportunities. Employers seek experienced regional professionals to strengthen their businesses.
New highs in the equity markets prompt the questions, "Is it a good time to invest?" and "What is a good strategy?" Read on to see what Cornerstone Wealth Management's Chief Investment Officer Alan Skrainka, CFA, has to say.
The document discusses the author's analysis of various stock portfolios from February 2015 to December 2015. For each month, the author calculates an equal weighted portfolio, global minimum variance portfolio, targeted return portfolio, and tangency portfolio using stock data from Apple, Exxon Mobil, Microsoft, and Alphabet. The author then analyzes the expected returns and risks of each portfolio to determine which would provide the highest utility for a risk-seeking investor. The optimal portfolio choice depends on the monthly returns and whether a tangency portfolio can be computed given the risk-free rate.
Fall 2015 AREIT Board Meeting Presentation FINALZi Chong
The document summarizes an investment track board meeting that included:
- Introductions of the investment team
- A review of the fund's objective to outperform the MSCI US REIT Index with a focus on value preservation given expectations for slower economic growth and continued volatility
- A domestic and global macroeconomic view noting a stable but slowing US economy alongside risks from China, commodities, and Europe
- An investment strategy of underweighting sectors most affected by global uncertainty while overweighting sectors driven by strong US fundamentals
- Analysis of property sector fundamentals and recommendations to underweight hospitality and remain neutral on other sectors
- Discussions of specific company stock recommendations like DCT Industrial, Regency Centers,
Market Twitter June 2017 – Narnolia Securities Limitednarnoliasecurities
We are pleased to share with you the JUNE 2017 edition of the Market Twitter . Valuable Inputs by Sri Shailendra Kumar, CIO, Narnolia Securities Ltd & Sri Dhirendra Kumar, CEO , Value Research. Please share this valuable informative market twitter with your Investors. Visit https://www.narnolia.com/.
At Quantic Asset Management, our clients’ needs and interests always come first. This is why we constantly strive to provide superior investment advice and returns, by directing our global resources to help you achieve the best possible financial future. We are committed to help you find the optimum investment for your requirements, regardless of the stage of life that you are in. We take great pride in our uncompromising determination to achieve excellence. The key to our success lies in finding the right approach to navigate through the noise in financial markets and filter out clear signals in order to present our clients with the most valuable investment advice. Quantic Asset Management is a EU-based investment specialist, with capabilities that span multi-asset and alternative investments.
Top 10 Reasons to Allocate to Microcap In PortfoliosIan Cassel
The document provides 10 reasons to allocate to microcap stocks in portfolios. It summarizes that microcaps have historically posted the best long-term returns compared to other market cap classes. It also notes that microcaps remain inefficient due to low analyst coverage and can provide diversification benefits through lower correlation to other assets. The document argues that microcaps are less susceptible to economic downturns and have historically performed well following interest rate hikes.
Review of Residential Real Estate Analysis Valuation MethodologiesTroy Adkins
The purpose of this presentation is to provide an overview of the traditional residential real estate analysis valuation methodologies and to provide an overview of two proprietary residential real estate analysis valuation methodologies that were developed by the founder of Adkins Capital Management. This presentation provides an overview of the following methodologies:
1) cost-based method
2) sales-based method
3) expense-based method
4) finance-based method
- The Indian stock market rose last week as the rupee stabilized around 65 levels against the dollar due to measures by the new RBI governor to provide short-term support to the currency.
- Factory activity in India contracted for the first time in over four years in August, while euro zone sentiment turned positive for the first time in more than two years.
- The report recommends remaining cautious on banking stocks and prefers sectors like IT, pharma, FMCG and telecom.
This document contains a summary of an analysis of Procter & Gamble (P&G) as an investment. Key points include:
1) Historical data was used to calculate metrics like WACC, beta, ROIC, and FCF to evaluate P&G's performance and forecast future growth assumptions.
2) Revenue growth rates of 1.8% for 2014 and 4.1% over 5 years were predicted, based on slower historical growth and anticipated challenges for P&G to generate significant new sales.
3) Calculations of metrics like ROIC and assumptions about ratios were used to project financials and value P&G, finding the stock could be a moderate buy given its valuation compared to
The document analyzes key financial metrics and statements for Apple Inc. over a 20-year period to determine its suitability as an investment. It calculates Apple's return on investment as 48,210%, beta as 1.29, cost of debt as 3.22%, and weighted average cost of capital as 7.16%. Similar metrics are provided for Microsoft, Walmart, Marriott, and Coca-Cola from 2019-2020. The analysis finds that Apple and Microsoft would provide the highest returns for investors.
The document discusses various ways to estimate growth rates for earnings, revenues, and operating income. It explores using historical growth rates, analyst estimates, and fundamentals-based approaches. The fundamentals-based approaches estimate growth based on reinvestment rates and returns on capital/equity. They note growth rates depend upon changing returns over time and how negative earnings, changing margins, and size effects are incorporated into the estimates.
The text file Ass1_Task1_POIs.txt can be used as the required te.docxssusera34210
The text file "Ass1_Task1_POIs.txt" can be used as the required text file for Task 1 of Assignment 1.
You are welcome to make your own text file.
In this file, each row is a building. There are 3 numbers in each row.
The first number is the type of building.
The next 2 numbers are the coordinates of the building (i.e. an x value and a y value).
The x and y values are between 0 and 100, to 2 decimal places. They are separated by a comma (",").
Below are the types of buildings that each ID number refers to:
1. Petrol Station
2. Taxi Stand
3. ATM
4. Hospital
5. Shopping Centre
Email me or post on the forums if you have any questions: [email protected]
TEMPLATE
Summary Report for CBI for the Canadian Expansion
Recommended Capital Structured Approach and my Recommendation with Justification
As Competition Bikes, Inc. expands, I have been requested to look north towards Canada as a possible investiture of business assets into the Canadian Marketplace for possible expansion. Having done a thorough examination and looking over the numerous options that may allow you to further review the possible expansion into Canada; I have deliberated the resulting tabulations as the ones that may be your most optimal solutions, based on the present economy, our own financial standing and Canadian markets. It is important to remember that the allotment of time is a section of five years. Specifically those are Year 9 to Year 13. This is accompanied with the goal of amassing approximately $600,000 for expansion. Here are 6 possible options that I will offer.
1st Fund Expansion with 100% Issuance of Bonds valued at 9%
2nd Fund Expansion with 60% Issuance of Bonds valued at 9%, with an additional release of 40% of Common Stock.
3rd Fund Expansion with 40% Issuance of Bonds valued at 9%, with an additional release of 60% of Common Stocks.
4th Fund Expansion with 20% Issuance of Bonds, valued at 9%, with an additional release of 80% of Common Stocks.
5th Issue a joint Stock Option of 50% Preferred and 50% Common Stocks.
6th Take a Bank Loan with 6% Interest for 5 Years (Year 9 – 13) with minimal return over the duration of the loan.
Each one of these six suggestions has a positive and a negative. From the get-go, let’s immediately dismiss the 6th suggestion. A Bank Loan with almost no return for five years is a bad idea. We would be required to have a minimum balance, and that money could be much better spent elsewhere, investing it in our company for better productivity. Bank Loans almost always carry with them minimum requirements, or minimum balances; neither of which will benefit our company. As I see it, we have a pair of good options available to us. Choice number 5 and Choice number 4.
Having looked over all of the choices listed, if we take a long-term approach; it would seem that our Choice number 5 would seem the more viable for our growth and expansion. Although Choice number 4 would certainly offer us a nicer short term re ...
The quarterly letter provides an update on portfolio performance and the manager's views. It notes that portfolio performance remains healthy but expectations for future returns should be realistic given high valuations. Specifically, the manager expects the index to return 10-12% annually over the next 5 years as valuations decline from monetary policy changes and normalization in private markets. The manager prefers positions in private banks, life insurance, and select industries and remains underweight consumer and IT given rich valuations.
This document provides a valuation of Costco stock using several models. It begins by calculating the discount rate using the CAPM model, determining a risk free rate of 3.75% and market risk premium of 3.1% based on economic indicators. It then estimates Costco's beta to be 0.9 based on its defensive nature and stable earnings. This yields a discount rate of 6.54%. It then provides inputs for the valuation models such as a long term growth rate of 4.75% and dividend of $1.80. The document will value Costco using the dividend discount model, capitalized earnings model, and H-model.
During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
Lauren Kelley, CEO of OPEXEngine, presented on using benchmarks and peer comparisons to drive continuous improvement and top quartile performance. OPEXEngine is a leading benchmarking database for software companies, with data on over 1,000 customers ranging from $1M to $1B in revenue. Benchmarking against relevant peers allows companies to identify issues, set targets, and make incremental improvements to optimize growth, margins, and key metrics like the "Rule of 40". Kelley discussed common benchmarking use cases around improving efficiency, expanding margins, and maximizing returns on sales, marketing, and R&D investments.
1Analyzing the Financial Health of 3M CompanyThere are s.docxfelicidaddinwoodie
1
Analyzing the Financial Health of 3M Company
There are several relevant economic theories that can be used to better understand what has helped transform 3M Company into a successful multibillion dollar business, one of which is demand-side economics. This is a theory that argues that economic growth is best created by a high demand for products and services. In the case of 3M, the company has experienced significant growth since it was founded 115 years ago because of the existing demand for its products. If there were no demand for items like abrasives, adhesives, laminates, fire protection, and so on, then there would be no macroeconomic growth. If there were no macroeconomic growth, then there would be little microeconomic growth either, and 3M would suffer as a result of there being little demand for its products.
To analyze the company’s financial figures, I first needed to access the raw annual data that was provided through the company’s income statements. I did this by using the website Stock Analysis on Net, which provides annual data for the past five years. I was able to then export this data to Excel and calculate the different margins and ratios using a variety of formulas that interacted with the data. Having this raw data in Excel form made it easy to create the necessary formulas and then apply them to each year because I could simply calculate a ratio once and then apply the formula to the remaining years in the income statement.
I was able to determine the adjusted current ratio by dividing the adjusted current assets by the adjusted current liabilities. This figure is similar to the quick ratio in the sense that assets are being compared to liabilities and a higher ratio is going to indicate the company is in a better position. From 2008 to 2017, 3M company had an adjusted current ratio that ranged from 1.54 to 2.25. Its peak ratio of 2.25 was achieved during 2011 when it had $12.240 billion in adjusted current assets and $5.441 billion in adjusted current liabilities.
To find the quick ratio, I divided the total quick assets by the current liabilities. From 2010 to 2017, 3M Company had a quick ratio of 0.85 to 1.39 with the quick ratio being at a low point in 2015 and a high point in 2011 and 2012. The quick ratio can be used to measure how well a company can fulfill its short-term financial liabilities, so a larger quick ratio is better. If the quick ratio is under 1.0, this indicates the company has more current liabilities than quick assets. This was the case in 2015 when the company had $6.070 billion in assets and $7.118 in liabilities giving it a quick ratio of 0.85. The low point was a result of the company having a smaller than usual amount of cash and cash equivalents and marketable securities with $1.798 billion in cash and $118 million in securities.
In terms of working capital turnover ratio, I was able to find this figure by dividing the net sales by working capital. From 2011 to 2017, 3M Company ha ...
With 25 years of investment management experience I am excited to begin my own firm in order to grow and preserve the hard earned assets of my clients.
Due tomorrow morning and here is my Module 1 assignment to use for m.docxsleeperharwell
Due tomorrow morning and here is my Module 1 assignment to use for module 4 SLP.
Apple Financial Analysis
Trident University
Adeyemi Olatunji
Module 1 SLP
FIN 501
Dr. Michael Aubry
May 21, 2017
Apple Financial Analysis
Apple Inc. is a premier company that deals with the design, production and marketing of computers, mobile phones and third party applications, and software. The company’s products include the iPhone, pad, and mac. The company’s operating system software include as is, OS X, watches, and those
("Apple - Annual Report", 2015).
Other products include; the Apple TV, iPod and the Apple Watch. Apple’s target market includes the government, midsized businesses and other enterprises. Apple is one the best performing companies in the tech industry as shown by its financial ratios that indicate the financial health of the company.
Recent Financial Performance
To efficiently evaluate Apples financial condition I analyzed its financial statements and used the values in the statements to calculate the financial ratios for the last three years. After performing an incisive analysis of the company’s financial statements by calculating various measures and comparing them to the industry benchmarks such as the S&P index it is evident that the company is financially strong and performing better than its peers in the industry.
Current financial Health
There are various ratios and techniques that can be used to analyze Apple’s current financial health. These measures can be categorized into liquidity, profitability, asset management and debt ratios. The ratios measure the performance, rate of growth, efficiency and the financial condition of the company as discussed below
Liquidity ratios
The current ratio measures the solvency and liquidity of an entity. It is calculated as current assets divided by current liabilities
(Khan, & Jain, 2007)
. Apple Inc.'s current ratio increased from 2014 to 2015 and from 2015 to 2016. The quick ratio is also another liquidity ratio that measures the ability of a company to meet its most current obligations. The steady increase in the liquidity ratio indicates that Apple has improved it is ability to meet its obligations.
LIQUIDITY RATIOS
2014
2015
2016
Quick ratio
0.67
0.72
1.04
current ratio
1.08
1.1
1.35
Financial Value
The price to earnings ratio is used to calculate the financial value of a company. The Price to earnings ratio can be interpreted as the length of time in years a company takes to recover the price paid for the stock. It values the company by measuring the current share price in relation to the earnings per share. The price to earnings ratio is calculated as; Market Value per Share / Earnings per Share. Apple’s Price to earnings ratio has been on the rise for the last couple of years but reduced slightly in the last fiscal year. The price to cash flow is also other ratio used in valuation of a company. According to the t.
1) The document discusses calculating a company's beta value using the Capital Asset Pricing Model (CAPM). Beta measures the volatility of a stock compared to the overall market and is used to estimate the expected return on the stock.
2) It provides steps for gathering stock price data, market index data, and Treasury bond rate data from online sources to perform a regression analysis to calculate beta. The regression analysis involves plotting stock returns against market risk premiums.
3) Interpreting the regression output, a higher beta means higher risk and a higher expected return. The R-squared value indicates what proportion of the stock's risk is systematic (non-diversifiable) versus company-specific. A statistically significant
1) The document discusses calculating a company's beta value using the Capital Asset Pricing Model (CAPM). Beta measures the volatility of a stock compared to the overall market and is used to estimate the expected return on the stock.
2) It provides steps for gathering stock price data, market index data, and Treasury bond rate data from online sources to perform a regression analysis to calculate beta. The regression analysis involves plotting stock returns against market risk premiums to obtain the beta estimate.
3) It explains how to interpret the beta value and regression results, such as adjusting the raw beta, considering the model's statistical significance, and relating the regression R-squared to the amount of systematic risk explained. The estimated
PE ratio is a metric that compares a company's stock price to its earnings per share. It indicates how much an investor pays for each dollar of earnings. A PE ratio is calculated by dividing the current stock price by the earnings per share. PE ratios help investors compare similar companies and determine if a stock is undervalued, appropriately priced, or overvalued. Factors like growth rates, profit margins, returns, macroeconomic conditions, and intangible assets can impact a company's PE ratio. Comparing a company's PE ratio to its industry peers provides useful insight into how the market values that company.
USING FINANCIAL STATEMENTS INFORMATIONDoulat panah
This document discusses financial statement analysis and the time value of money. It covers:
- Reasons for analyzing financial statements like performance evaluation and checking projections.
- Benchmarking methods like comparing to peers or historical trends.
- Calculating future value over time using compound interest formulas for single deposits or regular cash flows.
- How present value considers the time value of money by discounting future cash flows.
This investor presentation summarizes Q4 2015 financial results and provides an outlook for Yelp. Yelp continues to grow its high-quality user-generated content and sees significant opportunity in the large and growing local advertising market. Key highlights include strong revenue growth of 51% in 2015, an adjusted EBITDA outlook of $90-105 million for 2016, and a long-term target model of 8-11% adjusted EBITDA margins. Yelp also discussed growth opportunities from its acquisition of Eat24 and SeatMe products.
9 Important Things To Consider In Quarterly Results Before Investing In Stock...ZyloStar
The Global exchange-listed companies must file their quarterly results with the stock market for the four quarters ending in June, September, December, and March. The March results also will include the annual results of the corporate.
Csod investor deck first quarter fina lv3ircornerstone
Cornerstone provides a corporate overview and financial results for the first quarter of 2016. It discusses its evolution from 1999 to the present day with over 2,500 clients, 23 million users, and a global footprint. Cornerstone also reviews its market leadership position, strong growth across key metrics, and clear path to profitability. It outlines the large and growing market opportunity in talent management and its strategies to continue expanding globally, penetrating its large installed base, and pursuing new opportunities in extended enterprise solutions and beyond 2016.
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
- Salesforce held its Analyst Day in October 2014 to report on 15 years of customer success and its $5 billion+ revenue run rate.
- The company discussed its strong growth across regions, with deferred revenue driving top line growth. It also addressed the foreign exchange headwinds expected in fiscal year 2016.
- Salesforce reviewed its best-in-class gross margins and goal of 125-150 basis point annual operating margin improvements, as well as its consistent operating cash flow and capital expenditure framework.
1. Investments 3033-003
Fernando Garcia
Discount Rate & Valuation of
AboutOracle,Inc.
Co-Founder&Executive Chairman:LawrenceJ. Ellison
CEO: Mark Hurd & SafraA. Catz
Oracle Corporation wasfoundedin1977 and isheadquarteredinRedwoodCity,California.
The company licensesitsOracle Databasessoftware to customers,which isdesignedto
enable reliable andsecure storage,retrieval,andmanipulationof variousformsof data.The
companyalsoprovidesarange of servicesinthree primarylayersof the cloud:Software asa
Service,PlatformasaService,andInfrastructure asa Service. Itoffersarange of software for
mobile computingtoaddressthe developmentneedsof businesses;and Java,a software
developmentlanguage.
Capital Asset Pricing Model
n order to determine the valuation of
Oracle (ORCL) I will calculate the
discount rate to value ORCL. In order
to determining the discount rate I will use
CAPM equation whose inputs include the
Risk free rate, Market Risk Premium, and
the Beta, in this following order.
CAP-M (Ke = Rf + MRP * Beta)
So lets begin with the Risk Free Rate…
Risk Free Rate
The risk free rate, which plays a critical role
on the yield rate of the 10-year Treasury,
has been low. The current rate is at 1.84%
(as of April 28, 2016 next release is on May
2nd) but historically tends to stay below 2%.
In my opinion, the only right thing to do is
to normalize the rate because of many
reasons. The Fed decisions are rarely
known, but according to the Musing on
Markets article, it is said that it seems the
Fed has an implicit message that lower risk
free rates are good for the economy and
the markets. They also say that the
normalized risk free rates are generally
computed by looking at the past average
10-year Treasury rate over the last 30 years,
which you can see below (starting at Jan.
1986-2016)
I
2. Principles of Investments
have been relatively dropping. They are
correct, but in the article they state and
argue that it is the wrong approach and I
beg to differ. The only reason why I do not
agree is because, although they may be
right, I rather be safe than sorry in this
occasion. With also the interest rates not
being the same as before the 4%
normalized risk free rate rather than the
actual low rate you may not get the value
you expect for your risky assets but it saves
you from the cyclical ups and downs of the
economy with risk free assets. I feel that it
is not a way that it should always be
because your returns will not have much
growth and may affect the risk premium for
risky asset classes, but I feel it is good to
have some assets with normalized risk free
rates just to be safe in your portfolio. You
could also compare these rates to those of
a Aaa and Baa corporate bond yield for the
past 10 years. Although, Aaa is the best
quality of a bond and Baa is a medium-
grade quality you could see that entering
2010 both bonds’ yield dropped and are
artificially low. Therefore, with my opinion
and
argument on normalized risk free rates I will
use a normalized 10-year Treasury. With my
chart up above, I too, believe that long term
the 10-Year Treasury has yielded 1% below
the expected nominal GDP growth.
According to my chart below (Conference
Board forecast) I will assume GDP will be 2%
since the job growth over the past months
have been pretty disappointing and the fall
of oil prices this year affecting the oil and
gas job market I believe it will be; 1%
productivity growth and 1% labor growth
making Real GDP 2% minus 1% equaling
1%. Using the Components of Nominal GDP
Growth by Decade as a reference and after
the downward months we’ve recently had I
assume the Federal Reserve to raise
3. Principles of Investments
interest rates, which I believe will increase
from the 2.1% inflation in 2015 to 2.4%.
Therefore, agreeing with Ron Sweet’s
theory equation my risk-free rate equal
3.4% and my Nominal GDP equal 4.4%. So
now, that leads us to determining our
Market Risk Premium…
Market Risk Premium
For the Market Risk Premium I will be using
the Implied Approach, which makes the
MRP correlate with my risk free rate. With
the Implied Approach, Expected Return on
Stocks will equal to the Current Dividend
Yield plus the Expected Earnings Growth of
the U.S. The Current Dividend yield of the
market is at 2.1% and Expected Earnings
Growth to be 4.4%. My estimated
Productivity Growth being 1% plus 1%
Labor Growth plus 2.4% inflation. Making
my long-term growth in earnings or
Expected Return on Stocks equal 6.5%
(2.1% + 4.4% = 6.5%).
MRP = Expected Return Stocks – Risk
Free Rate
Market Risk Premium: .065 - .034 = 3.1%
Now, for the final piece of the equation,
Beta…
Beta
I will be discussing and determining the four
components of Oracle’s beta.
1. Revenue Sensitivity
2. Operating Leverage
3. Financial Leverage
4. History
1. Revenue Sensitivity
Oracle is a technology company which
makes its stock a tech stock. Tech stocks
generally tend to have high beta’s (>1)
making it a cyclical stock. Since it is cyclical
it will not hold up well in a recession due to
it being vulnerable to the economy but will
do good in a recovering economy.
2. Operating Leverage
Oracle has a relative low fixed cost and as
you can see in the chart below its Net and
Gross Margin are below than that of the
average S&P 500 as well, making them
steady. Which makes me believe beta is
right at 1 or very slightly above.
3. Financial Leverage
Gross Margin Standard Deviation (%) S&P 500 ORCL UN Equity Rank
Median 3.53 1.78 22.6%
90 Precentile 13.56
10th Percentile 1.06
Net Margin Standard Deviation (%) S&P 500 ORCL UN Equity Rank
Median 5.37 1.78 14.3%
90 Precentile 57.38
10th Percentile 1.41
4. Principles of Investments
Oracle’s debt is slightly below average.
Making me believe that the beta is very
close or around 1.
4. History
History implies that beta rose well above 1
ever since the aftermath of the financial
crisis in ’08 and has stayed at 1 or well
above. Comparing my chart with that of
Zach Mueller, oracle has shown a trend in
the latest year of a beta in between 1.10 to
1.20. I will go with the long term trend and
forecast that beta is 1.18.
I will be using the CAP-M equation to
determine the discount rate of Oracle.
CAP-M (Ke = Rf Rate + MRP * Beta)
= .034 + .031 * 1.18 = .0767 or 7.67%
Now we will be using the discount rate we
calculated to determine the value of Oracle.
Debt to Equity S&P 500 ORCL UN Equity Rank
Median 52.58 51.40 49.1%
90Precentile 258.49
10th Percentile -
5. Principles of Investments
In this paper I will determine the valuation
of Oracle using three valuation models. The
Gordon Growth Model, Capitalized Earnings
Model, and the H Model. But first, in order
to find an answer to these models we must
first find the inputs of our stock, Oracle. The
inputs consist of the stocks Dividend 0
(ttm), Earnings Per Share (EPS) 0 (ttm),
Long-term Growth Rate, Inflation
Assumption, Short-Term Growth Rate, and
the time period for getting from short-term
to long-term growth. Now, let’s start with
finding these inputs…
Inputs for the
Valuation of Oracle
The Dividend 0 (ttm) and EPS 0 (ttm) for
Oracle, according to yahoo finance, is .60
and 2.07. The Long-term Growth Rate for
Oracle I assume should be the same
calculation for the function of the US
economy or Nominal GDP growth which is
4.4%. Mainly because it is the direction
Oracle will be heading depending on the
economy, in which I believe will be positive,
because it is a tech company and being in
this generation technology is enhancing
more and more every day. With the
software that Oracle could provide to all the
different sectors because every job now a
day uses technology, this could mean
positive growth for Oracle. Since I
concluded that inflation will be 2.4% in the
near future for Nominal GDP growth I will
use that as my inflation assumption. The
Short-term growth rate consists of three
things; the PEG Ratio Approach, Sustainable
Growth, and the Historical Growth. To
calculate the PEG ratio, it consists of a
formula that is, PE Ratio/PEG Ratio which
should equal expected Short-term growth.
For Oracle the PE ratio equals 19.22, PEG
ratio equals 2.27, and if you divide those
two it will equal to a short-term growth of
8.5%. To get a Sustainable Growth you must
multiply Return on Equity by Retention,
where Retention equals 1 minus dividends
divided by Earnings Per Share. When you
solve that out, from our previous input
dividends equals .60 and our EPS equaled to
2.07. Now, if you divide those two and
subtract by 1 you will receive 71%. So now,
we look at our ROE on yahoo finance which
is, 19.51% and you multiply that by our
retention we just calculated and should
receive a Sustainable Growth of 14%. Now
for our historical growth as you can see in
our graph the EPS have had a drastic drop in
the 90’s but have stayed fairly consistent
during the 2000’s, so I’m going to say that
our Short-Term Growth is 10%.
Now for our last input, which is the time
period for getting from Short-Term to Long-
Term Growth. I believe that since it is like I
6. Principles of Investments
have stated before, a technological
company, there are many competitors out
there such as leading leaders which consist
of companies such as Google, Apple, Dell,
and so forth. With U.S. competing against
other countries such as China and Japan for
leading technological companies Oracle has
a lot of competition out there and they are
rapidly expanding but they must come up
with a software that will set them apart to
put Oracle above all competitors. So with
that, I forecast that Oracle’s Long-Term
growth will be about 14 years. Making their
H equal 7. Now that we have all of our
inputs and data of the Article we can start
with our 3 different models. Let’s start first
with the Dividend Discount Model…
Dividend Discount Model: Value = (Div0 * (1
+ LT Growth)) / (ke – LT Growth)
(.60 * (1 + .044)) / (.0767 - .044) = $19.16
Next, the Capitalized Earnings Model…
Capitalized Earnings Model: Value = (EPS0 *
(1 + Inflation)) / (ke – Inflation)
(.0207 * (1 + .024)) / (.0767 - .024) = $.40
Lastly, our H model…
H Model: Value = (Div0 * (1 + LT Growth) +
Div0 * H * (ST – LT)) / (ke – LT)
(.60 * (1 + .044) + .60 * 7 * (.10 - .044)) /
(.0767 - .044) = $26.35
Oracle currently trading for: $39.86
So, to conclude I recommend that Oracle is
a strong buy due to it pricing lower than the
current price and the positive trend it may
have in the future.