Running head: STOCK PERFORMANCE AND EQUITY INVESTMENTS 1 STOCK PERFORMANCE AND EQUITY INVESTMENTS 4 Stock Performance and Equity Investments Toni Stewart Rasmussen College Author Note This paper is being submitted on September 6, 2015 for Professor Roundtree’s B230/FIN1000 Principles of Finance course. Stock Performance and Equity Investments Investors and stock analysts use the price earnings ratios and the performance of the stock to determine whether the pricing for the stock is average and profitable for both parties. Economists argue that the average price earnings ratios for a stock can help in predicting the performance of the stock of interest (Hafer, 2007). The trends in the past performance can be compared to the current situation to make predictions on investment. This report analyzes the performance of the five stocks selected. Starbucks Corp (SBUX) The past performance may not indicate the future success of a business. The Starbucks stock valuation is improving with the SBUX trading at 30 times the forward its earnings. This is a tremendous result which shows a much more expensive than its average for a five year plan which is 25 times. The share prices have increased over the past few months. This has been caused by the increased number of customers in their shops which increase their capital structure. The high tech plans for SBUX delivery plan that has been put into place has juiced up the sales of the coffee shop. This has been a great focus on the changing technology by the company. The promising technology has prompted investors to venture and buy shares from the market thus increasing the demand of the SBUX shares. The preferred shareholders in the SBUX are compensated first in case of any business decision of dissolving it. This differentiates them from the common stock shareholders who are paid last in case of dissolution of the Starbucks business. Dunkin Brands Group, Inc. (DNKN) The stock prices of DNKN have been increasing over the months. This has increased the capital base of the company. The stock growth rate has been an average of 15%. The stock price increase was an action caused by the increase in revenues which have grown by 5% in the current financial period. There has been a gross margin increase from 86.49% to 86.78% whereas the net margin of the company gas increased by 4.2%. The DNKN brands do not have preferred shareholders in their share stock market. The dividends have yielded a 2.17% income on the share capital. There was a growth in the revenue by 8.1%. There was an increase in the full year earnings by the company which ranged between 1.87 per share and 1.91 per share as compared to the previous financial statement which was ranging from $1.87 and $ 1.83 per share. The tremendous growth was driven by the positivity in their attitude as part of their organizational culture. This attracted many customers in their branches thus increasing their revenue. Coach, Inc. (COH) The stock prices of .

1. Running head: STOCK PERFORMANCE AND EQUITY
INVESTMENTS 1
STOCK PERFORMANCE AND EQUITY INVESTMENTS 4
Stock Performance and Equity Investments
Toni Stewart
Rasmussen College
Author Note
This paper is being submitted on September 6, 2015 for
Professor Roundtree’s B230/FIN1000 Principles of Finance
course.
Stock Performance and Equity Investments
Investors and stock analysts use the price earnings ratios
and the performance of the stock to determine whether the
pricing for the stock is average and profitable for both parties.
Economists argue that the average price earnings ratios for a
stock can help in predicting the performance of the stock of
interest (Hafer, 2007). The trends in the past performance can
be compared to the current situation to make predictions on
investment. This report analyzes the performance of the five
stocks selected.
Starbucks Corp (SBUX)
The past performance may not indicate the future success of a
business. The Starbucks stock valuation is improving with the
SBUX trading at 30 times the forward its earnings. This is a
tremendous result which shows a much more expensive than its

2. average for a five year plan which is 25 times. The share prices
have increased over the past few months. This has been caused
by the increased number of customers in their shops which
increase their capital structure. The high tech plans for SBUX
delivery plan that has been put into place has juiced up the sales
of the coffee shop. This has been a great focus on the changing
technology by the company. The promising technology has
prompted investors to venture and buy shares from the market
thus increasing the demand of the SBUX shares. The preferred
shareholders in the SBUX are compensated first in case of any
business decision of dissolving it. This differentiates them from
the common stock shareholders who are paid last in case of
dissolution of the Starbucks business.
Dunkin Brands Group, Inc. (DNKN)
The stock prices of DNKN have been increasing over the
months. This has increased the capital base of the company. The
stock growth rate has been an average of 15%. The stock price
increase was an action caused by the increase in revenues which
have grown by 5% in the current financial period. There has
been a gross margin increase from 86.49% to 86.78% whereas
the net margin of the company gas increased by 4.2%. The
DNKN brands do not have preferred shareholders in their share
stock market. The dividends have yielded a 2.17% income on
the share capital. There was a growth in the revenue by 8.1%.
There was an increase in the full year earnings by the company
which ranged between 1.87 per share and 1.91 per share as
compared to the previous financial statement which was ranging
from $1.87 and $ 1.83 per share. The tremendous growth was
driven by the positivity in their attitude as part of their
organizational culture. This attracted many customers in their
branches thus increasing their revenue.
Coach, Inc. (COH)
The stock prices of COH have been decreasing with time over
the months, they are bought at a higher price and end up being
sold in the market at a lower price thus causing a loss in the
shareholders market. COH does not have preferred dividends

3. thus the shares are reimbursed according to the articles of
association.
Michael Kors Holdings, Ltd. (KORS)
KORS showed a decline in the value of the stock which made
the KORS to trade at a 24% decline. The stock prices went
down although there is an anticipation that the company’s stock
prices will go up in the next financial year with an estimated
increase of between $4.40 and $4.50. The decline in the stock
price was as a result of the reduced sales revenues (Gamm,
2015) in the various stores that are located across the country.
KORS have preferred stock holders and are given a greater
claim of their shares than the common stock holder.
Nike, Inc. (NKE)
The NKE stock has the highest stock prices in the market. This
shows an increase in their prices over the weeks. The yields of
the dividends are 1.025% on the share capital (Jones, 2015).
The stock prices have risen by 2.4% over the months. The
goodwill of NKE has caused the stock prices performance to be
great in the stock market.

4. References
Gamm, S. (2015). The street. stock plummet. Retrieved from
http://ww.thestreet.com/story/13165676/1/michael-kors-stock-
plummets-24-following-a-dramatic-dip-in-same-store-sales.html
Hafer, R., & Hein, S. (2007). The stock market. Westport,
Conn.: Greenwood Press.
Jones, D. (2015). CNN money. Financial market. Retrieved
from http://http://money.cnn.com/quote/quote.html?symb=NKE
Running head: RATIO ANALYSIS 1
RATIO ANALYSIS 6
Ratio Analysis
Toni Stewart
Rasmussen College
Author Note
This paper is being submitted on August 29, 2015 for
Professor Roundtree’s B230/FIN1000 Principles of Finance
course.

5. Stock Performance and Equity Investments
Ratio analysis is carried out on various parts of a
company’s accounts to try and analyze how health a given firm
is (Gibson, 2009). This is all aspects of the company, may it be
in production and inventory, in terms of equity, liabilities and
the company’s assets. Ratio analysis can also be carried out to
determine the profitability of the company. As such, ratio
analysis is a vital part in the company as it tried to determine its
financial position not only for the present, but also the future
(Leach, 2010). For example, gearing tries to show the
management of the company, the company’s position in terms of
its borrowed capital.
For this analysis, two firms will be used. That will be Starbucks
Corp and Durkin Brands Group, Inc. Ratios for the year 2014
are calculated from the financial reports acquired from the
investor relations parts in their websites. This information is
then by far as true as the financial reports state.
Ratio Analysis
Liquidity Ratio
Liquidity ratios try to show how a company is financially
fluid, and its ability to meet its short term liabilities while
preparing itself for the long term liabilities. It then goes that the
higher the ratio the higher its margin of safety.
Current Ratio
This is the ratio of a company’s current assets to its
current liabilities (current assets/ current liabilities). Starbuck
Corp current ratio is1.37 while that of Dunkin Brands Group,
Inc. is 1.24.
Quick Ratio
The quick ratio is the proportion of the current assets less the
inventory to the current liabilities
(current assets – inventor) / current liabilities). Starbucks Corp
quick ratio is 1.36 while

6. Dunkin Brands Group, Inc. quick ratio is 1.18. These ratios
show us that the two companies are at a good place as far as
liquidity and ability to take care of its current liabilities is
considered.
Inventory Ratios
Inventory Turnover Ratio
Inventory Turnover Ratio is calculated by taking the total sales
made by the company and expressing them as a ratio or
proportion of the company’s inventory (sales/ inventor).
Starbucks Corp inventory turnover ratio is 1150.19 while
Dunkin Brands Group, Inc. is 35.48.
Receivable Turnover Ratio
This ratio is used a parameter, used to measure the ability of a
firm to give credit while also collecting debts (Castagna. 2013).
It is found as a proportion of net credit sales to the average
accounts receivable. No information could be found for
Starbucks Corp and Dunkin Brands Group, Inc. for receivable
turnover ratio.
Days Sales Outstanding (DSO)
Days Sales Outstanding is the average number of days it usually
takes a company to collect its revenue after a credit sale has
been made (accounts receivable/ total credit sales * number of
days (365)). These two ratios were not calculated. This is
because the two companies in question are fast food services
companies and as such do not offer credit sales. Also there is no
credit sales recorded in their financial reports
Fixed Asset Turnover Ratio
This ratio gives a proportion of the net sales to fixed assets. It
is used to measure willingness of the company get sales using
its fixed assets (net sales/ net property, plant and equipment).
Starbucks Corp fixed asset ratio is 4.67 while Dunkin Brands
Group, Inc. is 5.41
Total Assets Turnover Ratio
Total Assets Turnover Ratio is the ratio of a company’s sales to
its total assets.
For Starbucks Corp the total assets turnover ratio is 1.53 while

7. Dunkin Brand Group, Inc. is 0.24
Profitability Ratios
Gross Profit Margin
This margin, or ratio, is usually expressed as a percentage and
expresses the revenue of a company less its cost of goods to its
revenue. Gross Profit Margin for Starbucks Corp is 0.58 Dunkin
Brands Group, Inc. is 0.89.
Operating Profit Margin
This is found by finding the proportion of the operating income
to that of the net sales (operating income/ net sales). This
margin for Starbucks Corp is 0.19 while Dunkin Brands Group,
Inc. is 0.45.
Net Profit Margin
Net Profit Margin is the percentage of revenue remaining after
all operating expenses, interest, taxes and preferred stock
dividends (but not common stock dividends) have been deducted
from a company's total revenue (Net profit/ revenue). This
margin for Starbucks Corp is 0.03 while Dunkin Brands Group,
Inc. is 0.24.
Return on assets (ROA)
This ratio is an indicator of how profitable a company is
relative to its total assets. ROA gives an idea as to how efficient
management is at using its assets to generate earnings and is
calculated by (Net income/ total assets). The ROA for Starbucks
Corp is 0.04 while Dunkin Brands Group, Inc. is 0.06.
Return on Equity
This is also a measure of profitability but is in reference to the
company’s equity. It is calculated by (Net income/
shareholders’ equity). ROE for Starbucks Corp is 0.081 while
Dunkin Brands Group, Inc. is 0.48.
Leverage Ratios
Net Worth Ratio
Net Worth is the amount by which assets exceed liabilities, and
is a key measure of how much an entity is worth. It is also
known as debt to equity ratio and is found by (Total liability/

8. shareholders’ equity). The Net Worth Ratio for Starbucks Corp
is 1.04 and for Dunkin Brands Group, Inc. is 7.62.
Debt Ratio
This ratio measures the extent of a company’s or consumer’s
leverage, and is calculated by (Total debts/ total assets). The
Debt Ratio for Starbucks Corp is 0.51 while Dunkin Brands
Group, Inc. is 0.88.
Coverage Ratios
Times Interest Earned
TIE is a metric used to measure a company's ability to meet its
debt obligations. It is calculated by (Income before interest and
taxes/ income expenses). TIE for Starbucks Corp is 49.29 and
Dunkin Brands Group, Inc. is 3.76. From these ratios it is clear
that the financial positions of these companies are completely
strong. It is however clear that the company Starbucks is in a
better position than Dunkin Brands.
References
Castagna, A., & Fede, F. (2013). Measuring and managing
liquidity risk. Chichester, West Sussex, U.K.: Wiley. Retrieved
from
https://books.google.com/books?hl=en&lr=&id=0RSxAAAAQB
AJ&oi=fnd&pg=PT11&dq=Castagna,+A.,+%26+Fede,+F.+(2013
).+Measuring+and+managing+liquidity+risk.&ots=q7P26_QGjr
&sig=7cRKeefkFSkiFTIWM7XHq8L-
QKo#v=onepage&q&f=false
Gibson, C. (2009). Financial reporting & analysis. Mason, OH:
South-Western Cengage Learning. Retrieved from
https://hendryadam.files.wordpress.com/2014/03/eb_gibson_sw0
9_franalysis11_nowm.pdf
Leach, R. (2010). Ratios made simple. Petersfield, Hampshire:
Harriman House. Retrieved from
http://bakery42idealism.nothingpdf.org/intermed/r/ratios-made-
simple-a-beginner-s-guide-to-the_sbytanw.pdf
Robinson, T. (2009). International financial statement analysis.
Hoboken, N.J.: John Wiley & Sons. Retrieved from
http://iefb.weebly.com/uploads/1/4/2/4/14240576/cfa_l-

9. 1_international_financial_statement_analysis.pdf
Running head: INVESTMENTS, INTEREST RATES, AND
RISKS 1
INVESTMENTS, INTEREST RATES, AND RISKS 2 2
Investments, Interest Rates, and Risks
Toni Stewart
Rasmussen College
Author Note
This paper is being submitted on August 16, 2015 for
Professor Roundtree’s B230/FIN1000 Principles of Finance
course.
Investments, Interest Rates, and Risks

10. Effects on the investments by level of interest in the Economy
The five investments are in one way or the other affected by the
interest rates level in the economy. The Starbucks Corp has seen
an increase in business activities such as the deal with the ride
sharing company Lyft. Moreover, the company has embraced
the idea of minimum wage increase. This is apparently an issue
that does not really affect this company in any significant way.
Customers have increased in number. This means that market is
growing by the day for this company. According to Fadden &
Watterson (2012), the rise or fall of level of interest rates in the
economy will definitely affect this company the most.
Dunkin Brands Groups has also had a good share of the market.
However it seems there are some internal wrangles within the
administration. The CEO’s seems to have a problem with the
minimum wage in the company. That could mean that there is
some financial instability within. Therefore major shifts in the
level of interest rates in the economy could shake the company
significantly.
Given the financial stability plus the investments already put in
place, I do not think Nike will be affected as much as the other
investments would be were the interest rates to increase. Nike is
able to partner with another financial investment giant, Apple to
take on common challenges such as a lawsuit (Siegel, 2008).
The company has public debts, and maybe investments will be
affected by increase in interests’ rates because of these debts.
However, the financial stability of this company might see it
through. It might not be affected as much as Starbucks and
Dunkin Brands Groups.
Bank rates and the 5 yr. bond will also be affected. According
to Siegel (2008), the value of the 5 yr. bond will change
inversely with the level of interest rates in that a high interest
rate will mean the value of the 5 yr. bond will decrease and vice
versa. This will be regulated by the government. It might
therefore not be affected much. The bank rates will be regulated
by the interest rates in the economy themselves. High interest in
the economy will definitely coincide with high bank rate, so

11. there will not be many effects.
The most and the least risky investments
The most risky investments in descending order from my list
are:
1) Starbucks Corp (SBUX)
2) Dunkin Brands Group, Inc. (DNKN)
3) Nike, Inc. (NKE)
4) 5 YR. Bond
5) 5 Yr. CD
Starbucks is the most risky to invest in because it faces tough
competition from
companies such as Dunkin Brands Group and McDonald’s.
Dunkin Brand Groups follows
Starbucks Corp in the list of most risky investment options
because it has a combinational challenge of facing competitors
and facing lawsuits in courts. Floyd (2010) indicated that more
than 15 lawsuits have been brought against the company by
none-other than the close competitors. Nike follows the two
companies in the list. The company has faced very big
challenges in Asia. These challenges have seen the company
decline its profit for some time. Moreover, competitors are
sprouting up in the market. Interest rates are the major
challenges in investing in 5 yr. bond. The fluctuation in interest
rates and inflation will be the determining factor in the risks
and losses in investments in 5 yr. bond.
References
Fadden, J., & Watterson, P. (2012). Investment. London: ICSA
Pub.
Floyd, J. E. (2010). Interest rates, exchange rates and world
monetary policy. Berlin: Springer.
Siegel, J. J. (2008). Stocks for the long run: The definitive
guide to financial market returns and long-term investment
strategies. New York: McGraw-Hill.

12. Company Selection & Stock WatchCompany Selection and
Stock WatchNo.DateStock NameStock SymbolCurrent
PriceExchange Traded OnFinancial Facts17/26/15STARBUCKS
CORPSBUX$57.29NASDAQMinimum wage hikes doesn't hurt
StarbucksStarbucks profit jumps 22% Chef sites increase in
customer trafficStarbucks strikes deal with ride-sharing
company Lyft27/26/15DUNKIN BRANDS
GROUP,INCDNKN$53.82NASDAQDunkin' CEO slams NY's
$15 minimum wage moveDunkin, Starbucks, and McDonalds:
Java Giants ahead of earningsDunkin Brands tops
expectations37/26/15COACH, INCCOH$30.47NYSECoach, Inc.
to Present at Nomura Retail ConferenceJust Published: Coach,
Inc. Stategy and SWOT ReportBuckingham's Trade Pair: Coach
upgraded to "Neutral", KORS downgraded to
Neutral47/26/15MICHAEL KORS HOLDINGS
LTD.KORS$39.33NYSEMichael Kors Holdings is an excellent
opportunuty for enterprising investorsMichael Kors Holdings
Ltd.(KORS) A stock to avoid says PiperMichael Kors Holdings
downgraded to "Neutral" at Buckhingham
Research57/26/15NIKE, INC.NKE$112.99NYSENike and Apple
work out settlement terms for FuelBand lawsuit Nike owes you
$25 for Nike +FuelBand fraudThe game is still going strong for
Nike
Course Project - Final Business Report
This week you will compile all of the information from the
course project and submit a business report. The report will
include information about the two firms within the same
industry that you have been analyzing throughout the course.
Required
Prepare a business report that summarizes the information
researched on your two firms. The report should include the
following:
· Name and background information on each of the firms.

13. · Overview of the financial statement and ratio analysis
performed for each firm.
· Detail related to the trend of the stock price performance for
each firm.
· Indication as to which firm you feel is the most financially
stable, supporting your position with your research and concepts
from this course.
Your assignment should be a minimum of 5 written pages and
utilize APA formatting. In-text citations and a reference page
should also be included.