Question
I/ Financial analysis Calculate the economic profitability and return on equity of Kering in 2009. Assume a corporate income tax rate of 30%. Treat provisions,
I/ Financial analysis
Calculate the economic profitability and return on equity of Kering in 2009. Assume a corporate income tax rate of 30%. Treat provisions, deferred taxes, other assets and other liabilities as working capital items. Specify whether there is a leverage or a club effect.
The implicit cost dtails are not provided but i I don't have them, do you best...thank you
Percentage of rate of return is not specified but i I don't have them, do you best...thank you
Consolidated income statement Kering
| In million | 2009 |
| Sales | 15 306 |
| Cost of sales | (5 481) |
| Gross margin | 9 825 |
| Commercial expenses | (5 364) |
| Administrative burdens | (1 289) |
| Profit from recurring operations | 3 172 |
| Other operating income and expenses | (120) |
| Operating result | 3 052 |
| Cost of financial debt | (173) |
| Other financial income and charges | 120 |
| Financial result | (53) |
| Taxes on profits | (847) |
| Share in the results of equity companies | 8 |
| Net income | 2 160 |
Consolidated balance sheet Kering as at 31 December
| In million | 2009 |
| ACTIVE | |
| Brands and other intangible assets, net | 8 227 |
| Acquisition deviations, net | 4 537 |
| Tangible capital assets, net | 5 173 |
| Equity investments | 126 |
| Financial investments | 504 |
| Other non-current assets | 658 |
| Deferred taxes | 395 |
| Fixed assets | 19 620 |
| Stocks and outstandings | 4 383 |
| Trade receivables and linked accounts | 1 461 |
| Income taxes | 512 |
| Other current assets | 1 587 |
| Cash and cash equivalents | 1 222 |
| Current assets | 9 165 |
| TOTAL ASSETS | 28 785 |
| In million | 2009 |
| LIABILITIES AND EQUITY | |
| Capital | 147 |
| Premiums | 1 736 |
| Self-held LVMH shares | (1 019) |
| Revaluation reserves | 917 |
| Other reservations | 7 062 |
| Conversion deviations | (119) |
| Net income | 1 879 |
| Equity group share | 10 603 |
| Minority interests | 991 |
| Equity | 11 594 |
| Long-term financial debt | 3 235 |
| Provisions for more than one year | 983 |
| Deferred taxes | 2 862 |
| Other non-current liabilities | 3 755 |
| Non-current liabilities | 10 835 |
| Short-term financial debt | 2 100 |
| Suppliers and related accounts | 1 899 |
| Income taxes | 692 |
| Provisions less than one year old | 255 |
| Other current liabilities | 1 410 |
| Current liabilities | 6 356 |
| TOTAL LIABILITIES AND EQUITY | 28 785 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
