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Week 9 Assignment: Equity Analysis Tashia Fouch Capella University BUS-4072: Analysis for Financial Management Professor Robert Watson March 2024
ABC FIRM Tel
123-456-7890 Fax
012-345-6789 123 Main Street Anywhere, USA www.abcfirm.com tfouch@abcfirm.com 12.31.2013 Memo Comments: Greetings! Using the Price-earnings Ratio and the DuPont Model, I have performed an equity analysis for ABC for the years 2012 and 2013 using the below information: •
Revenue: $130,500,000 (2012); $202,560,000 (2013). •
Net Income: $22,740,000 (2012); $44,563,000 (2013). •
Assets: $210,000,000 (2012); $206,700,000 (2013). •
Shareholders' Equity: $146,500.000 (2012); $148,824,000 (2013). •
Market Value Per Stock Share: $23.15 (2012); $28.22 (2013). •
Earnings Per Share: $2.87 (2012); $4.10 (2013). •
Industry Average ROE: 22.5% (2012); 27.3% (2013). •
Industry Average Price/Earnings Ratio: 7.7 (2012); 8.2 (2013). The following is my analysis of the changes from 2012 to 2013, as well as my recommendations for the year 2014. The ABC Firm has shown improved performance in 2013 compared to the prior year (2012), which is evident from the changes in its ROE and P/E ratio in comparison to industry benchmarks (see attached for P/E ratio and ROE calculations). Higher returns and a reduced P/E ratio suggest that The ABC Firm is excelling and experiencing a positive trend in its performance. As we move into 2014, it is advisable for the company to reinvest its earnings instead of distributing them as dividends to shareholders. Given ABC's ability to generate returns surpassing the industry average, shareholders are inclined towards seeing the company expand. This strategy is expected to result in an increased share price in the coming years and enhanced earnings for shareholders. To ABC Senior Management From Tashia Fouch CC Prof. Robert Watson Re ABC Firm –
Equity Analysis for 2012+2013
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Related Questions
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Media for settlement:
Excel (source or supporting data)
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D. As a Field Operation, out of the three dealers, which one has Decreased battery sales? How to improve it.
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F. In your opinion, which of the three dealers is the best and the worst dealer
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Question 1
Complete the table below about contractual requirements for strategic planning in an organization.
Identify at least two contractual requirements for strategic planning in an organisation.
In 50 words or more, describe the implication of each identified contractual
requirement for the organisation's business.
Contractual Requirement
I.
II.
Budget
Timelines.
Implicati
on
Clarity regarding the direction of the firm can be obtained by
creating budgets and economic projections. The best
business idea, product, service, or marketing plan alone
won't guarantee success. Additionally, it is crucial to
comprehend the business's financial figures and the
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2
QUESTION 2
Type in five forces and identify each as Strong, Weak or Neutral. Support your analysis with statements and/or observations.
Force
Strong/Weak/Neutral
Supporting Fact / Details
Threat of substitutes
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Threat of existing rivals
Bargaining power of suppliers
Bargaining power of customers
the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
B IUS
Paragraph
Arial
14px
启 Q
三=
三 三
次T Te
Ω
区 田田
田用图
六()C
田
田
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(4)
QUESTION 5:
Study the graph below and answer the questions that follow.
RAND TUMBLES TO 3-WEEK LOw. STOCKS FALL AS
EARNINGS DISAPPOINT
At 1600 GMT the rand was 2.2% weaker at R16.91 per dollar, its weakest since Jul
Source : https://www.moneyweb.co.za/news-fast-news/rand-tumbles-to-3-week-I
stocks-fall-as-earnings-disappoint/
5.1
Identify the market above
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alternatives
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22
6
B
19
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11
C
12
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15
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ChatGPT X
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GBS 660_A X
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GBS 660_Assignment Distance January 2024 (1).pdf
Production X
Lusaka Times-Zamb... R Browse Map | Rulac
Item cost per Unit
Setup cost
4 / 4
2
80
6-Hour D X
Inventory carrying cost per year
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1
105
3
130
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Membersh X b Answered: X G The detern X
100% + #
$25
$100
20.8%
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Building a Better Re...
0
6
200
Get involved in hum...
7
125
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A
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Immediate
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1
4
7
4
B Prepare Proposal Paper
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A,B
A,B
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G
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H
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D
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H
J
Interview
H
K
Roundtable Discussion
H
L
Acquire Tender
I,J,K
M
Complete Agreement of renting & Stamping
M
22226332HI
1
1
1
1
3544
7552233m
8
006627733
14
N
Proceed With Business
L
7
14
5452
21
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