Change the assignment as described below Today is the last day deadline, please help me change as soon as possible to complete, thank you

I only need some one help me do the 2.4 2.5 3.0 4.0

use the genting plantation company 2015 annual report

1. 0

introduction( page - 5%)

2. 0

Critical analysis of the financial performance and position of the firm based onthe latest annual report and/or financial statements. Critically evaluate thefinancial ratios and performance trends. Identify the financial strengths and

weaknesses of the firm from various perspectives. You may use a competitor orindustry benchmark for comparisons where appropriate. Providing generaldefinition of ratio will gain you no mark. Formulae in exhibits only. Refer to the

requirements (i) through (vi) as follows:

2.1 Evaluate the profitability of the firm. (10%)

2.2 Evaluate the liquidity of the firm. (10%)

2.3 Evaluate the asset management efficiency of the firm. (10%)

2.4 Evaluate the distribution decision of the firm. (10%)

2.5 Evaluate the financing decision of the firm. (10%)

2.6 Estimate the cost of capital of the firm. (10%)

(4 to 4 pages)

3. 0 Based on the evaluation in Part 2, critically discuss whether the trade-off theoryor the pecking order theory is more relevant to the firms financing decision.

You are encouraged to refer to academic paper(s). (1 page - 20%)

4.0 Choose the appropriate valuation technique(s) to estimate the fair value of the

firm. Compare your calculation with the current stock price.

( to 1 page - 10%)

5. 0 Conclude your findings.( page 5%)

6. Attach formulae & detailed calculations, financial data/statements and other

related information sources as appendices / exhibits.

References must be provided when using information from other sources.

Introduction Genting Plantations Berhad ("Genting Plantations"), formerly known as Asiatic Development Berhad, is one of the fastest growing plantation companies listed on the Main Board of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Incorporated in Malaysia as a private limited company on 29 September 1977, under the name of Asiatic Development Sdn Bhd, it became a wholly owned subsidiary of Genting Berhad ("Genting") on 22 February 1980 to spearhead Genting's plantation business. Listed on Bursa Malaysia on 30 August 1982, Genting Plantations currently ranks amongst the top 10 listed companies in terms of market capitalization in the plantation sector. As at 30 April 2009, Genting Plantations is a 54.7% owned subsidiary of Genting Berhad. In April 1980, Genting Plantations commenced business through the successful acquisition of the Rubber Trust Group comprising 3 Hong Kong domiciled rubber companies which owned some 13,700 hectares of plantation land in Peninsular Malaysia. Strengths: Strengths mean what are the positive points of the organization. The strengths of Genting Plantations are: The managers regard their sub ordinates. Main focus of the organization to increase their customers. Managers use participative approach. Their employees are highly motivated. They hire local employees. Ratios 2.1 Profitability Ratios Profitability analysis is the primary goal of a company. If the company has no profits it can't survive in the long run. Profitability is measure with income, expenses, assets and liabilities. Below are the major calculations that are used for profitability analysis: Profitability ratios measure the profitability of a concern generally. They are calculated either in relation to sales or in relation to investment. The ratio that tells about the company ability to pay of its short term debts obligations. The ratio is the outcome of dividing cash and other short term assets by short terms borrowings and liabilities. 2.1.1 Gross profit margin Gross profit margin =Gross income Sales =4509440001374931000=32.80% If we look over the company gross profit margin increase to 32.8% in 2015 as compare to 20.6% in 2014 which we can correlate with the WCC company sales in the previous section. As the company sales increase the direct impact in the company profit margin also can be seen which a good sign for the company profit stability. 2.1.2 Operating profit margin Operating profit margin =Operating income Sales =2756210001374931000=20.05% 2.1.3 Net profit margin Net profit margin =Net income Sales =1765950001374931000=12.84% 2.2 Liquidity Ratios The ratio that tells about the company ability to pay of its short term debts obligations. The ratio is the outcome of dividing cash and other short term assets by short terms borrowings and liabilities. 2.2.1 Current ratio Current ratio =Current assets Current liabilities=2482154000 424467000=5.8477 Current ratio: The current ratio shows does business has enough current assets to make the payment of the current liabilities. The current ratio of company is 5.84 in 2015 which has increased in comparison to 4.1 of 2014. Although the current ratio for the company in comparison to the industry average is 1.3. So on overall basis the current ratio is in line with the previous years and also in line with the industry and also is very healthy. 2.2.2 Quick ratio: Quick ratio = (Current asset - Inventory) Current liabilities=(248215400098078000)424467000=561.66 2.2.3 Net working capital to sales ratio Net working capital to sales ratio=(current asset - current liabilities) sales=(2482154000424467000)1374931000=149.66% 2.3 asset management efficiency Management efficiency ratios include return on assets and return on equity. These ratios provide the information regarding the amount of sales generated for every dollar of assets that company owns. The inventory turnover ratio in simple terms measures the rate at which the company purchases the raw material and sells the finished goods to the customers. The lower inventory turnover ratio resembles that company can't able to utilize its inventory in a proper manner and the holding period of the inventory is more. 2.3.1 Inventory turnover Inventory turnover = Cost of goods sold Inventory=923987000 98078000=9.42 times Inventory turnover (total asset turnover) is a financial ratio that measures the efficiency of a Company's use of its assets to product sales. In case of PepsiCo the company inventory turnover ratio increases in 2015 to 9.42 times as compare to 9.8 times in 2014 and it is also higher as comparison to the industry ratio which stood at 7.3. The higher inventory turnover ratio resembles that company able to utilize its inventory in a proper manner and the holding period of the inventory is less. 2.3.2 Accounts receivable turnover Accounts receivable turnover = Sales on credit Accounts receivable = 1374931000334097000 = 4.12times Means the ability to collect the receivables from the customer. Shorter be the period it will be a better for the company as the company able to pay for its inventory and not have to expose them to greater amounts of short term debt through increased working capital financing. As we can see receivable turnover decreases in 2015 to 9.8 as compare to 10.0 in 2014 and also it is lower than that of the industry average which stood at 10.6 which shows company management is managing its receivable in a better way. 2.3.3 Total asset turnover Total asset turnover = Sales Total assets=13749310007245597000=0.19 times Asset turnover (total asset turnover) is a financial ratio that measures the efficiency of a Company's use of its assets to product sales. In case of PepsiCo the company inventory turnover ratio increases in 2015 to 0.19 times as compare to 0.14 times in 2014 and it is also higher as comparison to the industry ratio which stood at 0.13. The higher inventory turnover ratio resembles that company able to utilize its inventory in a proper manner and the holding period of the inventory is less. 2.3.4 Fixed asset turnover Fixed asset turnover = Sales Fixed assets=1374931000(1561740000+2109665000)=0.3745times 2.4 2.5 2.6WACC Equations with data and brief description To determine WACC, Del Monte utilized this particular formula: WACC = (1 - t) rd (D / V) + rE (E/V) T WACC represent the cost of capital of the corporation and includes all the capital sources we should only value the investment that are similar to our divisions. It means we can use the WACC only if investment possibilities have similar features. Based on Heinz's data, its historical effective marginal tax rates were consistently lower than the statutory rates of 35%, which suggests that the effective rate would be a more accurate estimate of the firm's tax shield. The firm tax rate is taken from the recent year annual statement available on SEC website. Link is provided in the reference. Rate of return on a risk-free asset The first variable of the CAPM is the rate of return on a risk-free asset. Heinz's average historic yields are provided for a number of risk-free assets with maturity periods ranging from one year to 30 years.8The short-term treasury bills (i.e. one to five-year maturity) provide increased reliability as the interest rates remain relatively stable over time despite fluctuating market conditions, but have decreased relevance due to their lack of sensitivity to the market. Long-term treasury bonds (i.e. maturity greater than 10 years) have greater relevance; however, the 30-year treasury bonds may project too far into the future, resulting in stale information and values that are not relevant to the existing market conditions. As a result, we use the five-year average yields (e.g. from 2005 to 2009) on the 10-year treasury bonds to calculate the 2009 (i.e. 4.17%)and 2010 (i.e. 4.06%) rate of return on a risk-free asset. Value of RM The return on the market is taken the S&P one-year return. S&P 500 1 Year Return is at -0.39%, compared to -8.19% last month and 10.44% last year. This is lower than the long term average of 8.56% So, the value of RM is 5.20%. WACC Calculation Weights for the WACC Value Of debt Value Of Equity $1,290.0 Value of Debt 0 Million Common shares 181.80 Long Term Lease $0.00 Million Market Price $15.11 Million Market Value of Equity 2,747.00 million $1,290.0 Total Value of Debt 0 Weight Of Debt 31.95% Weight Of Equity 68.05% Cost of Equity (RE) 4.86% Cost Of Debt (Rd) 2.05% Tax Rate (Tc) 36.00% WACC = [(wE) x RE] + [(wD) x RD x (1- TC)] Cost Weight Weighted million Cost Cost of Equity (RE) 4.86% 68.05% 3.31% Cost Of Debt (Rd) 2.05% 31.95% 0.66% WACC 3.96% 3.0 4.0 5.0Conclusion From the above comparison of both the companies we can see the management of Genting Plantations is more efficient as compare to that of the competitors. We can see the currents assets and the utilization of the assets also the repayment of the debt is properly taken into the account by the Genting Plantation as compare to competitors. Since balance sheets present the health of a company as of one point in time, valuable information will be lost if managers do not take the opportunity to compare the progress and trend of a business by regularly evaluating and comparing balance sheets of past time periods. Information is power. The information that can be gleaned from the preparation and analysis of a balance sheet is one financial management tool that may mean the difference between success and failure