Please help me with my Finance homework.
You will evaluate an individual dividend paying company. Your goal is to write a convincing report that demonstrates reasons for buying or selling short the company chosen. Calculate the following ratios for your company. (Show all of the numbers used in calculation using the attached financial reports)
a. Current ratio
b. Quick ratio
c. Total debt ratio
d. Equity multiplier ratio
e. Inventory turnover
f. Total asset turnover
g. Profit margin
h. Return on Assets
i. Return on Equity
j. Market-to-Book
k. Price-to-Earnings
Use SML equation to calculate the required return on your stock. Use Treasury rate for risk free rate (use historical return (your book is a good place to find this number)). (6.0%) Use an average market return for expected return on market (at least 50 years (your book is a good place to find this number)). (12.0%) Use the current beta (many sources like Yahoo Finance). Use the constant growth formula to calculate the required return on your stock. To estimate g, take the next 5-year earnings per share annual growth rates or a similar estimation. (Value Line on library website) Find current market price in WSJ or Yahoo. Use for D0, the indicated annual dividend.
Apple Inc. NasdaqGS: AAPL Summary News Conversation 362.09 +2.03 (+0.56%) As of Thu. Jun 25, 2020 1:36 PM EDT. Nasdaq Real Time Price (USD). Market open. Full screen 365.00 362.11 360.06 359.00 356.00 10 AM 12 PM 02 PM 1D 5D 1M 6M YTD 1Y MAX Prev. Close 360.06 Day's Range 357.57 - 364.02 ME Open 360.70 52-wk Range 192.58 - 372.38 Be > Bid 362.43 x 1.2k Vol 21.95M PAI Ask 362.50 x 800 Avg. Vol 38.38M EP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, 2020 2019 2020 2019 Net sales: Products $ 44,965 $ 46,565 $ 124,069 $ 120,000 Services 13,348 11,450 26,063 22,325 Total net sales 58,313 58,015 150,132 142,325 Cost of sales: Products 31,321 32,047 83,396 80,285 Services 4,622 4,147 9,149 8,188 Total cost of sales 35,943 36,194 92,545 88,473 Gross margin 22,370 21,821 57,587 53,852 4,565 4,952 9,517 3,948 4,458 8,406 9,016 10,149 19,165 7,850 9,241 17,091 Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 12,853 282 13,135 1,886 11,249 $ 13,415 378 13,793 2,232 11,5615 38,422 631 39,053 5,568 33,485 $ 36,761 938 37,699 6,173 31,526 $ $ 2.58 S 2.55 $ 2.47 S 2.46 $ 7.63 $ 7.56 $ 6.70 6.66 $ Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 4,360,101 4,404,691 4,674,071 4,700,646 4,387,570 4,429,648 4,704,945 4,736,949 $ (+ Net sales by reportable segment: Americas Europe Greater China Japan Rest of Asia Pacific Total net sales 25,473 $ 14,294 9,455 5,206 3,885 58,313 $ 25,596 $ 13,054 10,218 5,532 3,615 58,015 S 66,840 $ 37,567 23,033 11,429 11,263 150,132 $ 62,536 33,417 23,387 12,442 10,543 142,325 $ $ (I Net sales by category: iPhone Mac iPad Wearables, Home and Accessories Services 28,962 $ 5,351 4,368 6,284 13,348 58,313 $ 31,051 $ 5,513 4,872 5,129 11,450 58,015 $ 84,919 $ 12,511 10,345 16,294 26,063 150,132 $ 83,033 12,929 11,601 12,437 22,325 142,325 Total net sales $ Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) March 28, 2020 September 28, 2019 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 40,174 $ 53,877 15,722 3,334 14,955 15,691 143,753 48,844 51,713 22,926 4,106 22,878 12,352 162,819 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 98,793 35,889 41,965 176,647 320,400 $ 105,341 37,378 32,978 175,697 338,516 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper and repurchase agreement Term debt Total current liabilities 32,421 $ 37,324 5,928 10,029 10,392 96,094 46,236 37,720 5,522 5,980 10,260 105,718 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies 89,086 56,795 145,881 241,975 91,807 50,503 142,310 248,028 Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,323,987 and 4,443,236 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 48,032 33,182 (2,789) 78,425 320,400 $ 45,174 45,898 (584) 90,488 338,516 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 28, March 30, 2020 2019 50,224 $ 25,913 33,485 31,526 5,602 3,407 (651) (259) 6,435 3,073 (124) (215) 7,284 699 7,923 (8,866) (13,520) 1,223 7,500 43,827 8,094 (1,006) 14,616 (717) (20,024) (540) (3,273) 37,845 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax benefit Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of commercial paper, net Proceeds from repurchase agreement Other Cash used in financing activities Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (66,489) 39,738 27,762 (3,960) (1,134) (146) (426) (4,655) (13,854) 16,880 22,635 (5,718) (291) (490) 30 19,192 390 (1,427) 17,011) (32,498) 430 (1,566) (6,914) (39,280) 2,210 (5,250) 1,518 2,556 (51) (46,347) (7,175) 43,049 $ (2,500) (36) (51) (43,133) 13,904 39,817 $ 7,505 $ 1,689 $ 9,497 1,762 Apple Inc. NasdaqGS: AAPL Summary News Conversation 362.09 +2.03 (+0.56%) As of Thu. Jun 25, 2020 1:36 PM EDT. Nasdaq Real Time Price (USD). Market open. Full screen 365.00 362.11 360.06 359.00 356.00 10 AM 12 PM 02 PM 1D 5D 1M 6M YTD 1Y MAX Prev. Close 360.06 Day's Range 357.57 - 364.02 ME Open 360.70 52-wk Range 192.58 - 372.38 Be > Bid 362.43 x 1.2k Vol 21.95M PAI Ask 362.50 x 800 Avg. Vol 38.38M EP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, 2020 2019 2020 2019 Net sales: Products $ 44,965 $ 46,565 $ 124,069 $ 120,000 Services 13,348 11,450 26,063 22,325 Total net sales 58,313 58,015 150,132 142,325 Cost of sales: Products 31,321 32,047 83,396 80,285 Services 4,622 4,147 9,149 8,188 Total cost of sales 35,943 36,194 92,545 88,473 Gross margin 22,370 21,821 57,587 53,852 4,565 4,952 9,517 3,948 4,458 8,406 9,016 10,149 19,165 7,850 9,241 17,091 Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 12,853 282 13,135 1,886 11,249 $ 13,415 378 13,793 2,232 11,5615 38,422 631 39,053 5,568 33,485 $ 36,761 938 37,699 6,173 31,526 $ $ 2.58 S 2.55 $ 2.47 S 2.46 $ 7.63 $ 7.56 $ 6.70 6.66 $ Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 4,360,101 4,404,691 4,674,071 4,700,646 4,387,570 4,429,648 4,704,945 4,736,949 $ (+ Net sales by reportable segment: Americas Europe Greater China Japan Rest of Asia Pacific Total net sales 25,473 $ 14,294 9,455 5,206 3,885 58,313 $ 25,596 $ 13,054 10,218 5,532 3,615 58,015 S 66,840 $ 37,567 23,033 11,429 11,263 150,132 $ 62,536 33,417 23,387 12,442 10,543 142,325 $ $ (I Net sales by category: iPhone Mac iPad Wearables, Home and Accessories Services 28,962 $ 5,351 4,368 6,284 13,348 58,313 $ 31,051 $ 5,513 4,872 5,129 11,450 58,015 $ 84,919 $ 12,511 10,345 16,294 26,063 150,132 $ 83,033 12,929 11,601 12,437 22,325 142,325 Total net sales $ Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) March 28, 2020 September 28, 2019 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 40,174 $ 53,877 15,722 3,334 14,955 15,691 143,753 48,844 51,713 22,926 4,106 22,878 12,352 162,819 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 98,793 35,889 41,965 176,647 320,400 $ 105,341 37,378 32,978 175,697 338,516 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper and repurchase agreement Term debt Total current liabilities 32,421 $ 37,324 5,928 10,029 10,392 96,094 46,236 37,720 5,522 5,980 10,260 105,718 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies 89,086 56,795 145,881 241,975 91,807 50,503 142,310 248,028 Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,323,987 and 4,443,236 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 48,032 33,182 (2,789) 78,425 320,400 $ 45,174 45,898 (584) 90,488 338,516 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 28, March 30, 2020 2019 50,224 $ 25,913 33,485 31,526 5,602 3,407 (651) (259) 6,435 3,073 (124) (215) 7,284 699 7,923 (8,866) (13,520) 1,223 7,500 43,827 8,094 (1,006) 14,616 (717) (20,024) (540) (3,273) 37,845 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax benefit Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of commercial paper, net Proceeds from repurchase agreement Other Cash used in financing activities Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (66,489) 39,738 27,762 (3,960) (1,134) (146) (426) (4,655) (13,854) 16,880 22,635 (5,718) (291) (490) 30 19,192 390 (1,427) 17,011) (32,498) 430 (1,566) (6,914) (39,280) 2,210 (5,250) 1,518 2,556 (51) (46,347) (7,175) 43,049 $ (2,500) (36) (51) (43,133) 13,904 39,817 $ 7,505 $ 1,689 $ 9,497 1,762
