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Need your assistance in finding solutions to the following problems: (fictitious company if you will) thanks Empirical Analysis 1. Calculated, summarized and bench marked current

Need your assistance in finding solutions to the following problems: (fictitious company if you will) thanks

Empirical Analysis

1. Calculated, summarized and bench marked current companys operational and financial ratios

2. Calculated, summarized and bench marked historical companys operational and financial ratios

3. Found or calculated average stock returns and bond yields

4. Found or calculated general market returns (S&P 500, Russell 2000, etc.)

Here's a history of the fictitious company...

image text in transcribed

5. Found or calculated firm beta

6. Found or calculated market beta

Soundness of Recommendation

.

Company Name : Child Word Incorporation Child Word Inc(CWI) was primarily incorporated as a producer of children food products for children below 10 years. The company was incorporated 30 years ago. After its incorporation due to heavy competition in the market it has entered into other segments like manufacturing of toys and gaming products. Today it is known for its leading game known as CWC. Even though there are very few players in the market CWI is bothered about its tough competitor Toy World Inc. whose product is almost similar and even much better than CWC. The company's child food products still accounts for 50 percent of its revenue. The company's Key managerial persons are planning to meet next month for finalizing the decisions regarding the capital requirements for re-engineering of its existing CWC product. Decisions regarding expansion of its food production segment by introducing new products and decision regarding discontinuing its toy segment. As the decisions are going to impact the company's position largerly, the management wanted to discuss from the roots for its strategic decision making process. The CEO asked the CRO to prepare a detailed report containing the company's primary business, secondary and tertiary businesses, their historical and present performances and their financial trends. Accordingly the CRO has made the following report

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