Documentz - Word Search Gurpal Goyal GG AutoSave C H2U File Home Insert Design Layout References Mailings Review View Help Share Comments 211 X Out In Copy Format Painter Times New Rome - 12 - A A Aar BIUX, * A-D-A- AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 Normal 1 No Spac. Heading 1 Heading 2 Subtitle Subtle Em. Emphasis Find Replace Select Peste Title Dictate Editor Clipboard Fom Paragraph Styles Editing Voice Editor pay ECOE Bars All rational Investors want to invest in securities (or projects) that are expected to yield a return water than their cost of capital. For the chief Financial officer (CFO) of a company, the procedure for determining where to inwest in a three-step process. The first step is finding the expected return on the securities or projects in which the firm may be interested. The second step in the determination of the firm's cost of capital. The final step is selecting those securities or projects whose expected return is greater than the firm's cost of capital. In reality neither of the first two steps precedes the other as the CFO may calculate the firm's cost of capital on an annual, a semi-annual, or even a quarterly hair, depending on changes in the capital markets. The calculated cost of capital may then be compared to the expected return of the various securities and capital projects available History of Ecut Bara cor ars (CC) was founded in 1976 by David 35 manufacturer of quality chocolate candy As with most food companies established in the United Kingdom in that period. Er started as a modest manufacturer of a single product that was sold locally. Later, if successful those firms expanded their sales efforts to regional, national, and sometimes even to international areas. ECoE Bars was one of the successful companies. David's first product was a chocolate bar that sold for twenty pence. The bar, known as the Eco Bar, soon became famous for its quality and fine taste. David expanded production to meet the rising demand for the Cool Bar, but crowth never exceeded cash available to for the expansion. Two of the basic tenets on which David founded and ran CC were to make a quality chocolate bar and not to go into debt. These tenets were considered almost sacrosanct, and David believed they were the reason for his success while many other loud companies wild. By 1996, when David Lunchreinsufles company over to his son, Harry, EE hd grown into a respected and well-krown 25-million regional chocolate firm. It had survived intense competition, Lcording tu David, because the firm still produced a quality product and, above all, had no debt. Harry followed the principles Iald down by his father, and in the next 10 years ce crew to a national firm with 500 million in sales. Although CE had purchased a confectionery candy firm, over 90 percent of the sales were from chocolate candy. Significantly only 5 percent of the firm's capital structure was in longterm dubt, the debt need to purchase the confectionery Candy fum. In 2010, when Harry's sun Barry became president of the family still owned all the shares of the form and the board of directors was made up untily of farruly members. However, in 2012 the company was forced into win public because of two circumstances. The first was the need to raise cash to pay estate taxes tollowing the death of Harry. The second came from the increasing awareness that the tirm needed to modernise its plants to compete with other food companies, which were slowly taking market share from FE with better quality candy products and higher profits from their automated, modern equipment. products and reducing By the early 2018 the firm had completed its modemisation, improving the quality of its However, the srident on the chocolate and confectionery business and its managers were beginning to realise that diversification into other lines of the food business might be necessary for E to survive in the increasingly competitive business environment. In addition, some family members were heginning to question the financial practices of the firm and the effects mode practices had om the share price. They noticed that throughout the 1990s, many of the oldline family food businesses were purchased by larger publicly held firms run by managers who were not majority shareholders of the firm More importantly they noticed that the returns on the shares sold seemed much higher than the returns they were receiving from their shares. During the carly 2010., EE did expand into the pasta business through the purchase of three trily owned lims and by 2018 hac 31 18 percent market share of the 1 billion UK pesta business. The purchase of these businesses was financed through two bond issues. Long tem debt, however, wa Tever more than 20 percent of total assets. te Acco: inwestgate Fas Page 1 of 1 Owords Engish India Type here to search + 100% ENG 1:20 PM IN 2020-12-20 2 O A) Documenti - Word Search Gurpal Goyal GG AutoSave C H2 File Home Insert Design Layout References Mailings Review View Help Share Comments 3 2 1 X Out In Copy Format Painter Calibri (Body - 11 A A A A A BIUX, * A-D-A- AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 No Spac. Heading 1 Heading 2 Find Replace Select Peste 1 Normal Title Subtitle Subtle Em Emphasis Dictate Editor Clipboard Fom Paragraph Styles Editing Voice Editor Sam Wood Sam Wood the chief financial officer (CFO) OPEE was hired in 2014 with specific instructions to mprove the return on the financial resources of the firm. Wood's background included four years as the caska manages of a large corporation with sales in excres of William He was a graduate or MBA wrogramme that is nationally known for its emphasis on facial management Wood saw the jobs CFO of EE an outstanding opportunity to affect the financial decision making of a fim in transition from family ownership to one that was becoming a multitrillion pemd publicly held im This Monday moming, Wood had just walked into his office at 7:10 am to find a note stuck on tais computer's monitor to call Barry, tie CEO of Eco Bars. Bany, bowever, was making a real fort to Big EE into the modem ca, insisting that many of the top executives and financial seminars sponsored by the Top Business School Woodsad suggested the seminars to Darry as a vehicle to help these executives understand te of the changes the thought weensary to improve ECUE Bars financial pestormance Wood called Barry, who asked him to come up to his office. In the next 30 minutes Wood learned that EE was cousadening the purchase of urbana Foods, a pasta producer with annual sales in excess of 400 millive, for 200 million. Bete a decisive wuld be made, Basty wanted the answers to the nancial questions trom Wood First what was the expected return from this proposed purchase! Second what 4 was E Bars' cost of capital? Finally, what was Wood's recurrendati on how the purchase could be financat Financial Infomation Wood reviewed the financial data. (See Exhibits 1 and 2.) The average outstanding balance of shorten, intact-bearing debt in 2019 was 84,600,000 and the weighted average in test rate was 62 percent. Dumnestie burrowing da lines of credit and commercial paper was used to fund a working capital requirements and provide interim tinancing for business acquisitions Maximum shorten borrowings at any mouth were 150,400,000. EE had two long-tum, AA+ rated bonds outstanding. The first was a 6.25 percent sinking fund debenture due in 12 years. This debenture is traded on the London Stock Exchange priced at 195.0 which results in yield to maturity of 6.87 per cent per annan. Of the original 550 million issue, 324 million is still outstanding. The second se was for $200 million and had a coupon merest rate of 7.00 percent. The entire issue was sold in 2017 in a private placement to two life insurance companies, and the issue will mature in 2045. Wood then called EE s investment banker and learned that the banker was highly confident that Eco Bars could see up to 200 million of new debt at the current renon Escutstanding long-term debt ke many other family-controlled but publicly held businesses, EE has two claszes of ordinary stares: Ordinary Shares and Class B shares The Onclinary Shares have one vote per share and the Class B shares held or controlled by family members) have 10 votes per share. However, the Ordinary Shares, voting separately as a cass, are entitled to clect one-sixth of the board of directors With regeer to divided right the endinary shares are entitled to cash dividends that are 10 percent ligber than those declared and paid on the Class B Shares. There e a total of 150 million shares of ordinary shoes and 20 millions of Class B She outstanding. The encat price of both the ordinary shares and Class B Shanes is 36d their bets is 0.05. The ordinary shoes and Class B Shares generally vote together without regard to clasz on matters submitted to shareholders. The growth rate of net incute, camnings prestare, dividends and ordinary stare prices are given in Exhibit 3. The increase in the stock price he averaged about 126 percent a year over the last five years. Some of this growth rate is the result of an aggressive repurchase of the Gian's disay shares. Over the past three years the fim has repurchased over 5 million ordinary shares. Finally, wood looked up the capitalisation ratio for other firms in the food industry. (See Exhibit 4.) As he expected. E E Bar had a much lower debt ratio than almost all other companies in the industry group. Wood wrote down the additional information that he thought he needed before starting to work. The current Treasury bit rate was 3.0 percent and the return on the FT all share index has averaged 10 percent 5 over the past 5 years. The current Corporate tax rate is 20 percent The beta for Urbani Food was 12 with deht accounting for 25 percent of the market value of the firm's capital. The yield to maturity for the debt was 7.2 percent per annum, slightly higher than that for the Ecoe Bars. Accusability Investigate D FOCUS Page 1 of 10 words English onca) Type here to search + 100% ENG 1:23 PM IN 2020-12-20 O I AC) AutoSave CH H20 Documentz - Word Search Gurpal Goyal GG File Home Insert Design Layout References Mailings Review View Help Comments w X out In Copy Format Painter Times New Rome 11 A A A A BIUX, * ALDA AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 Nommal 1 No Spac. Heading 1 Heading 2 Subtitle Subtle Em Emphasis Share Find - Replace Dictate Select Peste Title Editor Clipboard Fond Paragraph Styles Editing Voice Editor Navigation X Wood reviewed the financial data Search paused Ileadings Pages Results Word paused so you can edit your document Use the arrows to continue and jump to the closest result Questions requiring answers: 1. What is Eso Bar's capital structure? List all the assumptions made underlying your calculations providing the rationale based on capital structure theories and practices. 2. What is Fsof Bar's hefore-tax cast of long-term debt and cost of equity? List all the assumptions made underlying your calculations providing the rationale based on capital market theories and practices. Use the Dividend Growth Model (DGM) and the Capital Asset Pricing Model (CAPM) in calculating the cost of equity, 3. Calculate the cost of capital for ESE Bar using weighted average cost of capital of debt and equity, and Miller and Modigliani proposition incorporating corporate tax Explain, which of the cost of equitics calculated in question 2 (using the DGM or the CAPM) is used? Why the capital asset pricing model is not used to estimate the firm's cost of capital directly? 4 If Eco Bar uses book value rather than market value to determine its capital structure, explain the impact of the cost of capital ou ils capital budgeling decisions! 5. Why using the book value or the market value of the finn's capital in the determination of the cost of capital is considered superior? Explain. 6. Wood apparently believes that Cool Bar's cost of capital can be used as the hurdle rate for the required return to evaluate the acquisition of Urbani Foods. Under what conditions, if any, is this Appropriate? 7. How can the firm raise 200 million for the acquisition without changing the present capital structure? 8. Assume that the expected net income of Eco Bar in 2020 is $400 million. how would you suggest that the finu finance the acquisition? Explain the advantages and disadvantages of share repurchase instead of cash dividend payments. Accessibilty Good to go DF DC Page 1 of 1288 word: English (da) Type here to search + 100% ENG 1:25 PM IN 2020-12-20 EH Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 Not syncing File C/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf + 7 of 10 A Read aloud Draw Highlight Erase EXHIBIT 1 Eco Bars Profit & Loss Account ( Million) 2019 2018 2017 Net sales 4100.00 3500.00 3000.00 Operating Profits 410.00 370.00 332.20 Interest expense 55.40 44.80 16.20 Pre-tax Profits 354.60 325.20 316.00 Taxes 70.92 65.04 63.20 Profits from continuing operations 283.68 260.16 252.80 Discontinued operations Profits 32.00 48.20 51.20 Gain on disposal 56.00 Net Profits 371.68 308.36 304.00 Earnings per share () 2.19 1.81 1.79 Dividend per sharo{) 1.00 0.95 0.90 A Type here to search EP ENG 1:25 PM IN 2020-12-20 Silent Films.docu.pdf Coursework BAF-7-1FM-2020-21 X 7- + 0 File C/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf Not syncing a of 10 + A Read aloud Draw Highlight Erase EcoE Bars Balance Sheet Comparison ( Million) 2019 2018 Assets Cash 140.20 15.60 Debtors 333.60 243.00 Inventory 617.60 526.40 Other current assets 146.80 659.00 Total current assets 1,238.20 1,444.00 Net property, plant equipment 1,472.00 1,129.00 Other assets 819.20 515.80 Total assets 3,529,40 3,088.80 Liabilities and Shareholders' equity Creditors 257.60 216.00 Short-term debt 109.80 59.40 Other current liabilities 323.40 238.20 Total current liabilities 690.80 513.60 . Long-term debat 524.24 561.80 Other long-term liabilities 96.00 86.40 Deferred income taxes 351.88 262.20 1,866.48 1,664.80 Shareholders' equity ' Total liabilities Shareholders' equity 3,529.40 3,088.80 A Type here to search O EH ENG 1:25 PM IN 2020-12-20 Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 O File C:/Users/gurpa/Downloads/Coursework-BAF-7-IFM-2020 21 Sem1%20(1).pdf Not syncing of 10 + E A Read aloud | Draw Highlight Erase 9 EXHIBIT 3 Eco Bars 5-year Financial Summary (Percent Change) Year Net Income Eamings per share. Dividends per share. Stock Price 2019 20.53% 20.53% 5.26% 12.50% 2018 1.43% 1.43% 5.56% 6.67% 2017 8.57% 5.19% 5.88% 7.14% 2016 7.69% 3.03% 6.25% 16.67% % 2015 4.00% 3.13% 6.67% 4.35% % EXHIBIT 4 A Type here to search O EH ENG 1:26 PM IN 2020-12-20 Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 Not syncing O File C:/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf + of 10 A Read aloud | Draw Highlight Erase EXHIBIT 4 Ratio of Long-Term Debt to Total Assets: Industry Group Analysis Dreyer's Grand 65.00% Borden 50 Hudson Foods 48 Flowers Industries 40 IGA Average 35 Gerber Products 32 Campbell Soup 28 Kellt Company 27 Wonder Bars 26 Hershey Foods 24 Smucker UM 3 Tootsie Roll Industries 0 10 A Type here to search ENG 1:26 PM IN 2020-12-20 Documentz - Word Search Gurpal Goyal GG AutoSave C H2U File Home Insert Design Layout References Mailings Review View Help Share Comments 211 X Out In Copy Format Painter Times New Rome - 12 - A A Aar BIUX, * A-D-A- AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 Normal 1 No Spac. Heading 1 Heading 2 Subtitle Subtle Em. Emphasis Find Replace Select Peste Title Dictate Editor Clipboard Fom Paragraph Styles Editing Voice Editor pay ECOE Bars All rational Investors want to invest in securities (or projects) that are expected to yield a return water than their cost of capital. For the chief Financial officer (CFO) of a company, the procedure for determining where to inwest in a three-step process. The first step is finding the expected return on the securities or projects in which the firm may be interested. The second step in the determination of the firm's cost of capital. The final step is selecting those securities or projects whose expected return is greater than the firm's cost of capital. In reality neither of the first two steps precedes the other as the CFO may calculate the firm's cost of capital on an annual, a semi-annual, or even a quarterly hair, depending on changes in the capital markets. The calculated cost of capital may then be compared to the expected return of the various securities and capital projects available History of Ecut Bara cor ars (CC) was founded in 1976 by David 35 manufacturer of quality chocolate candy As with most food companies established in the United Kingdom in that period. Er started as a modest manufacturer of a single product that was sold locally. Later, if successful those firms expanded their sales efforts to regional, national, and sometimes even to international areas. ECoE Bars was one of the successful companies. David's first product was a chocolate bar that sold for twenty pence. The bar, known as the Eco Bar, soon became famous for its quality and fine taste. David expanded production to meet the rising demand for the Cool Bar, but crowth never exceeded cash available to for the expansion. Two of the basic tenets on which David founded and ran CC were to make a quality chocolate bar and not to go into debt. These tenets were considered almost sacrosanct, and David believed they were the reason for his success while many other loud companies wild. By 1996, when David Lunchreinsufles company over to his son, Harry, EE hd grown into a respected and well-krown 25-million regional chocolate firm. It had survived intense competition, Lcording tu David, because the firm still produced a quality product and, above all, had no debt. Harry followed the principles Iald down by his father, and in the next 10 years ce crew to a national firm with 500 million in sales. Although CE had purchased a confectionery candy firm, over 90 percent of the sales were from chocolate candy. Significantly only 5 percent of the firm's capital structure was in longterm dubt, the debt need to purchase the confectionery Candy fum. In 2010, when Harry's sun Barry became president of the family still owned all the shares of the form and the board of directors was made up untily of farruly members. However, in 2012 the company was forced into win public because of two circumstances. The first was the need to raise cash to pay estate taxes tollowing the death of Harry. The second came from the increasing awareness that the tirm needed to modernise its plants to compete with other food companies, which were slowly taking market share from FE with better quality candy products and higher profits from their automated, modern equipment. products and reducing By the early 2018 the firm had completed its modemisation, improving the quality of its However, the srident on the chocolate and confectionery business and its managers were beginning to realise that diversification into other lines of the food business might be necessary for E to survive in the increasingly competitive business environment. In addition, some family members were heginning to question the financial practices of the firm and the effects mode practices had om the share price. They noticed that throughout the 1990s, many of the oldline family food businesses were purchased by larger publicly held firms run by managers who were not majority shareholders of the firm More importantly they noticed that the returns on the shares sold seemed much higher than the returns they were receiving from their shares. During the carly 2010., EE did expand into the pasta business through the purchase of three trily owned lims and by 2018 hac 31 18 percent market share of the 1 billion UK pesta business. The purchase of these businesses was financed through two bond issues. Long tem debt, however, wa Tever more than 20 percent of total assets. te Acco: inwestgate Fas Page 1 of 1 Owords Engish India Type here to search + 100% ENG 1:20 PM IN 2020-12-20 2 O A) Documenti - Word Search Gurpal Goyal GG AutoSave C H2 File Home Insert Design Layout References Mailings Review View Help Share Comments 3 2 1 X Out In Copy Format Painter Calibri (Body - 11 A A A A A BIUX, * A-D-A- AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 No Spac. Heading 1 Heading 2 Find Replace Select Peste 1 Normal Title Subtitle Subtle Em Emphasis Dictate Editor Clipboard Fom Paragraph Styles Editing Voice Editor Sam Wood Sam Wood the chief financial officer (CFO) OPEE was hired in 2014 with specific instructions to mprove the return on the financial resources of the firm. Wood's background included four years as the caska manages of a large corporation with sales in excres of William He was a graduate or MBA wrogramme that is nationally known for its emphasis on facial management Wood saw the jobs CFO of EE an outstanding opportunity to affect the financial decision making of a fim in transition from family ownership to one that was becoming a multitrillion pemd publicly held im This Monday moming, Wood had just walked into his office at 7:10 am to find a note stuck on tais computer's monitor to call Barry, tie CEO of Eco Bars. Bany, bowever, was making a real fort to Big EE into the modem ca, insisting that many of the top executives and financial seminars sponsored by the Top Business School Woodsad suggested the seminars to Darry as a vehicle to help these executives understand te of the changes the thought weensary to improve ECUE Bars financial pestormance Wood called Barry, who asked him to come up to his office. In the next 30 minutes Wood learned that EE was cousadening the purchase of urbana Foods, a pasta producer with annual sales in excess of 400 millive, for 200 million. Bete a decisive wuld be made, Basty wanted the answers to the nancial questions trom Wood First what was the expected return from this proposed purchase! Second what 4 was E Bars' cost of capital? Finally, what was Wood's recurrendati on how the purchase could be financat Financial Infomation Wood reviewed the financial data. (See Exhibits 1 and 2.) The average outstanding balance of shorten, intact-bearing debt in 2019 was 84,600,000 and the weighted average in test rate was 62 percent. Dumnestie burrowing da lines of credit and commercial paper was used to fund a working capital requirements and provide interim tinancing for business acquisitions Maximum shorten borrowings at any mouth were 150,400,000. EE had two long-tum, AA+ rated bonds outstanding. The first was a 6.25 percent sinking fund debenture due in 12 years. This debenture is traded on the London Stock Exchange priced at 195.0 which results in yield to maturity of 6.87 per cent per annan. Of the original 550 million issue, 324 million is still outstanding. The second se was for $200 million and had a coupon merest rate of 7.00 percent. The entire issue was sold in 2017 in a private placement to two life insurance companies, and the issue will mature in 2045. Wood then called EE s investment banker and learned that the banker was highly confident that Eco Bars could see up to 200 million of new debt at the current renon Escutstanding long-term debt ke many other family-controlled but publicly held businesses, EE has two claszes of ordinary stares: Ordinary Shares and Class B shares The Onclinary Shares have one vote per share and the Class B shares held or controlled by family members) have 10 votes per share. However, the Ordinary Shares, voting separately as a cass, are entitled to clect one-sixth of the board of directors With regeer to divided right the endinary shares are entitled to cash dividends that are 10 percent ligber than those declared and paid on the Class B Shares. There e a total of 150 million shares of ordinary shoes and 20 millions of Class B She outstanding. The encat price of both the ordinary shares and Class B Shanes is 36d their bets is 0.05. The ordinary shoes and Class B Shares generally vote together without regard to clasz on matters submitted to shareholders. The growth rate of net incute, camnings prestare, dividends and ordinary stare prices are given in Exhibit 3. The increase in the stock price he averaged about 126 percent a year over the last five years. Some of this growth rate is the result of an aggressive repurchase of the Gian's disay shares. Over the past three years the fim has repurchased over 5 million ordinary shares. Finally, wood looked up the capitalisation ratio for other firms in the food industry. (See Exhibit 4.) As he expected. E E Bar had a much lower debt ratio than almost all other companies in the industry group. Wood wrote down the additional information that he thought he needed before starting to work. The current Treasury bit rate was 3.0 percent and the return on the FT all share index has averaged 10 percent 5 over the past 5 years. The current Corporate tax rate is 20 percent The beta for Urbani Food was 12 with deht accounting for 25 percent of the market value of the firm's capital. The yield to maturity for the debt was 7.2 percent per annum, slightly higher than that for the Ecoe Bars. Accusability Investigate D FOCUS Page 1 of 10 words English onca) Type here to search + 100% ENG 1:23 PM IN 2020-12-20 O I AC) AutoSave CH H20 Documentz - Word Search Gurpal Goyal GG File Home Insert Design Layout References Mailings Review View Help Comments w X out In Copy Format Painter Times New Rome 11 A A A A BIUX, * ALDA AaBbccI AaBbcc Aabba Aaltcec AaB Aabbcc Aabbcc daBloc 1 Nommal 1 No Spac. Heading 1 Heading 2 Subtitle Subtle Em Emphasis Share Find - Replace Dictate Select Peste Title Editor Clipboard Fond Paragraph Styles Editing Voice Editor Navigation X Wood reviewed the financial data Search paused Ileadings Pages Results Word paused so you can edit your document Use the arrows to continue and jump to the closest result Questions requiring answers: 1. What is Eso Bar's capital structure? List all the assumptions made underlying your calculations providing the rationale based on capital structure theories and practices. 2. What is Fsof Bar's hefore-tax cast of long-term debt and cost of equity? List all the assumptions made underlying your calculations providing the rationale based on capital market theories and practices. Use the Dividend Growth Model (DGM) and the Capital Asset Pricing Model (CAPM) in calculating the cost of equity, 3. Calculate the cost of capital for ESE Bar using weighted average cost of capital of debt and equity, and Miller and Modigliani proposition incorporating corporate tax Explain, which of the cost of equitics calculated in question 2 (using the DGM or the CAPM) is used? Why the capital asset pricing model is not used to estimate the firm's cost of capital directly? 4 If Eco Bar uses book value rather than market value to determine its capital structure, explain the impact of the cost of capital ou ils capital budgeling decisions! 5. Why using the book value or the market value of the finn's capital in the determination of the cost of capital is considered superior? Explain. 6. Wood apparently believes that Cool Bar's cost of capital can be used as the hurdle rate for the required return to evaluate the acquisition of Urbani Foods. Under what conditions, if any, is this Appropriate? 7. How can the firm raise 200 million for the acquisition without changing the present capital structure? 8. Assume that the expected net income of Eco Bar in 2020 is $400 million. how would you suggest that the finu finance the acquisition? Explain the advantages and disadvantages of share repurchase instead of cash dividend payments. Accessibilty Good to go DF DC Page 1 of 1288 word: English (da) Type here to search + 100% ENG 1:25 PM IN 2020-12-20 EH Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 Not syncing File C/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf + 7 of 10 A Read aloud Draw Highlight Erase EXHIBIT 1 Eco Bars Profit & Loss Account ( Million) 2019 2018 2017 Net sales 4100.00 3500.00 3000.00 Operating Profits 410.00 370.00 332.20 Interest expense 55.40 44.80 16.20 Pre-tax Profits 354.60 325.20 316.00 Taxes 70.92 65.04 63.20 Profits from continuing operations 283.68 260.16 252.80 Discontinued operations Profits 32.00 48.20 51.20 Gain on disposal 56.00 Net Profits 371.68 308.36 304.00 Earnings per share () 2.19 1.81 1.79 Dividend per sharo{) 1.00 0.95 0.90 A Type here to search EP ENG 1:25 PM IN 2020-12-20 Silent Films.docu.pdf Coursework BAF-7-1FM-2020-21 X 7- + 0 File C/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf Not syncing a of 10 + A Read aloud Draw Highlight Erase EcoE Bars Balance Sheet Comparison ( Million) 2019 2018 Assets Cash 140.20 15.60 Debtors 333.60 243.00 Inventory 617.60 526.40 Other current assets 146.80 659.00 Total current assets 1,238.20 1,444.00 Net property, plant equipment 1,472.00 1,129.00 Other assets 819.20 515.80 Total assets 3,529,40 3,088.80 Liabilities and Shareholders' equity Creditors 257.60 216.00 Short-term debt 109.80 59.40 Other current liabilities 323.40 238.20 Total current liabilities 690.80 513.60 . Long-term debat 524.24 561.80 Other long-term liabilities 96.00 86.40 Deferred income taxes 351.88 262.20 1,866.48 1,664.80 Shareholders' equity ' Total liabilities Shareholders' equity 3,529.40 3,088.80 A Type here to search O EH ENG 1:25 PM IN 2020-12-20 Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 O File C:/Users/gurpa/Downloads/Coursework-BAF-7-IFM-2020 21 Sem1%20(1).pdf Not syncing of 10 + E A Read aloud | Draw Highlight Erase 9 EXHIBIT 3 Eco Bars 5-year Financial Summary (Percent Change) Year Net Income Eamings per share. Dividends per share. Stock Price 2019 20.53% 20.53% 5.26% 12.50% 2018 1.43% 1.43% 5.56% 6.67% 2017 8.57% 5.19% 5.88% 7.14% 2016 7.69% 3.03% 6.25% 16.67% % 2015 4.00% 3.13% 6.67% 4.35% % EXHIBIT 4 A Type here to search O EH ENG 1:26 PM IN 2020-12-20 Silent Films.doc.pdf Coursework BAF-7-1FM-2020-21 x + 0 Not syncing O File C:/Users/gurpa/Downloads/Coursework BAF-7-IFM 2020 21 Sem1%20(1).pdf + of 10 A Read aloud | Draw Highlight Erase EXHIBIT 4 Ratio of Long-Term Debt to Total Assets: Industry Group Analysis Dreyer's Grand 65.00% Borden 50 Hudson Foods 48 Flowers Industries 40 IGA Average 35 Gerber Products 32 Campbell Soup 28 Kellt Company 27 Wonder Bars 26 Hershey Foods 24 Smucker UM 3 Tootsie Roll Industries 0 10 A Type here to search ENG 1:26 PM IN 2020-12-20