help with question D please

There numern alier remiovin the costs relating ta resiructeriag activies. Tha bahlas calculate net incime end b. urands and rabios using these adjuted income numbers in and tion ta thise asing the resortad wi luere. Colgate's compounded annualized cum-divi eend retum exer the 2002 -2011 gelicd is 6 gior compared ta 5,30 : for Kinbery-Clark (note the periad is 2002-2011. and not 20012011. Verify these numbers are tuee. Lhit: This is advanced analysis that covers matenal firom finance outside the seipe of this chepler and shoudi io attempted only by those wha are camuersant with finanice techriques. Cum-dividend retum is deternined ogthe folloning formule: Cumtilidenid return for a year = LCClosing stock price + Cast dividend paid during the jeariopening stock price] - Lsing this formul a determine the cum-dividend retum for each calmpany far every yor. Then determine the co mpounded annualized raturn over the entire period). t Exemine all of the previous analyses and provide a commentary that compares the performance of Colgate and Yimberiy-Ciark over the 2002-201L perios is Erod, the dats in the lililes abose are avail able in Exce fumat and can be donaloaded from the book's website. paxy ahat protick and wells varions papen anthentselg. Chit ber the tables helow provide sumumas linancial information for hoth Colpate Financial Statement Analysis Kimberly-Clark is a household products com- Colgate and Kimberly- Cla k k pany that produces and sells various paper Clark is similar to Colgate: both are mature and profitable consum company wis a good com financi of similar size. Therefore, Kimberly-Clark is a good company financial financial performance. The tables below provide summary fination. Required: Conduct a detailed comparative analysis of Colgate and Kimberly-Clark's financial performance over the 2001-2011 period. Specifically: a. Conduct an index-number trend analysis separately for every item reported in the table (e.g., net sales, gross profit, etc.). Use 2001 as the base year (i.e., set 2001 numbers equal to 100). b. Calculate the following ratios for every year for each company: return on investment (return on assets, return on common equity), operating performance (gross profit margin, operating profit margin), asset utilization (total asset turnover), capital structure (total debt to equity, long-term debt to equity), dividend payout rate, and market measures (price-to-earnings, price-to-book). c. Conduct an index-number trend analysis separately for every one of the ratios that you computed in (b). Once again use 2001 as the base year. d. For analysis in (a), (b), and (c) that involves net income or operating income, it is important to also examine these numbers after removing the costs relating to restructuring activities. The tables calculate net income and operating income after adding the pretax cost of restructuring (e.g., net income before restructuring). Compute all trends and ratios using these adjusted income numbers in addition to those using the reported numbers. e. Finally, we need to determine the stock price performance of the two companies over this period. To do that, we need to determine cum-dividend return. Cum-dividend return is the return on a stock including cash dividends. Colgate's compounded annualized cum-dividend return over the 2002-2011 period is 6.9% compared to 5.3% for Kimberly-Clark (note the period is 2002-2011 and not 2001-2011). Verify these numbers are true. (Hint: This is advanced analysis that covers material from finance outside the scope of this chapter and should be attempted only by those who are conversant with finance techniques. Cum-dividend return is determined by the following formula: Cum-dividend return for a year =[( Closing stock price + Cash dividend paid during the year)/Opening stock price] - 1. Using this formula, determine the cum-dividend return for each company for every year. Then determine the compounded annualized return over the entire period). f. Examine all of the previous analyses and provide a commentary that compares the performance of Colgate and Kimberly-Clark over the 2002-2011 period. Note: This case involves extensive data analysis and should be done using Excel (or similar software). To facilitate the analysis in Excel, the data in the tables above are available in Excel format and can be downloaded from the book's website. There numern alier remiovin the costs relating ta resiructeriag activies. Tha bahlas calculate net incime end b. urands and rabios using these adjuted income numbers in and tion ta thise asing the resortad wi luere. Colgate's compounded annualized cum-divi eend retum exer the 2002 -2011 gelicd is 6 gior compared ta 5,30 : for Kinbery-Clark (note the periad is 2002-2011. and not 20012011. Verify these numbers are tuee. Lhit: This is advanced analysis that covers matenal firom finance outside the seipe of this chepler and shoudi io attempted only by those wha are camuersant with finanice techriques. Cum-dividend retum is deternined ogthe folloning formule: Cumtilidenid return for a year = LCClosing stock price + Cast dividend paid during the jeariopening stock price] - Lsing this formul a determine the cum-dividend retum for each calmpany far every yor. Then determine the co mpounded annualized raturn over the entire period). t Exemine all of the previous analyses and provide a commentary that compares the performance of Colgate and Yimberiy-Ciark over the 2002-201L perios is Erod, the dats in the lililes abose are avail able in Exce fumat and can be donaloaded from the book's website. paxy ahat protick and wells varions papen anthentselg. Chit ber the tables helow provide sumumas linancial information for hoth Colpate Financial Statement Analysis Kimberly-Clark is a household products com- Colgate and Kimberly- Cla k k pany that produces and sells various paper Clark is similar to Colgate: both are mature and profitable consum company wis a good com financi of similar size. Therefore, Kimberly-Clark is a good company financial financial performance. The tables below provide summary fination. Required: Conduct a detailed comparative analysis of Colgate and Kimberly-Clark's financial performance over the 2001-2011 period. Specifically: a. Conduct an index-number trend analysis separately for every item reported in the table (e.g., net sales, gross profit, etc.). Use 2001 as the base year (i.e., set 2001 numbers equal to 100). b. Calculate the following ratios for every year for each company: return on investment (return on assets, return on common equity), operating performance (gross profit margin, operating profit margin), asset utilization (total asset turnover), capital structure (total debt to equity, long-term debt to equity), dividend payout rate, and market measures (price-to-earnings, price-to-book). c. Conduct an index-number trend analysis separately for every one of the ratios that you computed in (b). Once again use 2001 as the base year. d. For analysis in (a), (b), and (c) that involves net income or operating income, it is important to also examine these numbers after removing the costs relating to restructuring activities. The tables calculate net income and operating income after adding the pretax cost of restructuring (e.g., net income before restructuring). Compute all trends and ratios using these adjusted income numbers in addition to those using the reported numbers. e. Finally, we need to determine the stock price performance of the two companies over this period. To do that, we need to determine cum-dividend return. Cum-dividend return is the return on a stock including cash dividends. Colgate's compounded annualized cum-dividend return over the 2002-2011 period is 6.9% compared to 5.3% for Kimberly-Clark (note the period is 2002-2011 and not 2001-2011). Verify these numbers are true. (Hint: This is advanced analysis that covers material from finance outside the scope of this chapter and should be attempted only by those who are conversant with finance techniques. Cum-dividend return is determined by the following formula: Cum-dividend return for a year =[( Closing stock price + Cash dividend paid during the year)/Opening stock price] - 1. Using this formula, determine the cum-dividend return for each company for every year. Then determine the compounded annualized return over the entire period). f. Examine all of the previous analyses and provide a commentary that compares the performance of Colgate and Kimberly-Clark over the 2002-2011 period. Note: This case involves extensive data analysis and should be done using Excel (or similar software). To facilitate the analysis in Excel, the data in the tables above are available in Excel format and can be downloaded from the book's website