Answered step by step
Verified Expert Solution
Question
1 Approved Answer
this is the right one For full points on this discussion, you should make your own original posting by the end of Wednesday (the due
this is the right one
For full points on this discussion, you should make your own original posting by the end of Wednesday (the due date shown in the module), then please respond to at least two other persons' posts by the end of Friday. In your original post (by Wednesday), please... - Begin thinking about your final project. Is there a company which interests you more than the others? Identify one or two potential firms from the list. - Read the following teaching notes, and ask questions (if you have any) about applying these to a company from the list. - Toward Understanding Free Cash Flow and DCF Analysis - Corporate Valuation Method - Adjusted Present Value Method - Equity Cash Flow Method - Discuss which of the approaches in Chapter 3 might be applicable to the firms you identified as a potential topic for your project. These are the companies we are focusing on this term: 1. Target Corporation (TGT) - Retailer 2. Dollar General Corp. (DG) - Retailer 3. GameStop Corp. (GME) - Retailer 4. AMC Entertainment Holdings Inc. (AMC) - Service Provider 5. Darden Restaurants, Inc. (DRI) - Service Provider 6. Planet Fitness Inc. (PLNT) - Service Provider 7. Alphabet Inc. (GOOGL) - Service Provider 8. PepsiCo, Inc. (PEP) - Manufacturer 9. International Paper Company (IP) - Manufacturer 10. 3M Company (MMM) - Manufacturer From this list of companies to research, choose the three which you find most interesting, then address items AJ (below) in your discussion. For reference in the instructions, consider your three firms to be Company I, Company II and Company III respectively. A. For Company I, list ten firms which you consider "comparable" to Company I. Create a single table of these ten firms showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA ratio for each (You can find ratios like these easily using public information sources like Yahoo Finance. For an illustrated example, click on this link: Yahoo finance has useful ratios...). B. Assess the value of Company I using these criteria: - What is the average and median Trailing P/E for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? - What is the average and median Price/Book for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? -What is the average and median Enterprise Value/EBITDA for the ten firms you chose as Value/EBITDA for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? C. For Company II, list ten firms which you consider "comparable" to Company II. Create a single table of these ten firms showing the Trailing P/E, Price/Sales. Price/Book and Enterprise Value/EBITDA ratio for each. D. Assess the value of Company II using these criteria: - What is the average and median Trailing P/E for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? -What is the average and median Price/Book for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? - What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? E. For Company III, list ten firms which you consider "comparable" to Company III. Create a single table of these ten firms showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA ratio for each. F. Assess the value of Company III using these criteria: -What is the average and median Trailing P/E for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Price/Book for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? G. Explain the limitations, problems and shortcomings of using multiples in developing an objective valuation. Be specific and use examples from your work on Company I, Company II and Company III. H. Examine the Statements of Cash Flows for Company I for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company I for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company I. I. Examine the Statements of Cash Flows for Company II for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company I for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company I. I. Examine the Statements of Cash Flows for Company II for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company II for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company II. J. Examine the Statements of Cash Flows for Company III for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company III for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company III. These are the companies we are focusing on this term: 1. Target Corporation (TGT) - Retailer 2. Dollar General Corp. (DG) - Retailer 3. GameStop Corp. (GME) - Retailer 4. AMC Entertainment Holdings Inc. (AMC) Service Provider 5. Darden Restaurants, Inc. (DRI) - Service Provider 6. Planet Fitness Inc. (PLNT) - Service Provider 7. Alphabet Inc. (GOOGL) - Service Provider 8. PepsiCo, Inc. (PEP) - Manufacturer 9. International Paper Company (IP) Manufacturer 10. 3M Company (MMM) - Manufacturer For full points on this discussion, you should make your own original posting by the end of Wednesday (the due date shown in the module), then please respond to at least two other persons' posts by the end of Friday. In your original post (by Wednesday), please... - Begin thinking about your final project. Is there a company which interests you more than the others? Identify one or two potential firms from the list. - Read the following teaching notes, and ask questions (if you have any) about applying these to a company from the list. - Toward Understanding Free Cash Flow and DCF Analysis - Corporate Valuation Method - Adjusted Present Value Method - Equity Cash Flow Method - Discuss which of the approaches in Chapter 3 might be applicable to the firms you identified as a potential topic for your project. These are the companies we are focusing on this term: 1. Target Corporation (TGT) - Retailer 2. Dollar General Corp. (DG) - Retailer 3. GameStop Corp. (GME) - Retailer 4. AMC Entertainment Holdings Inc. (AMC) - Service Provider 5. Darden Restaurants, Inc. (DRI) - Service Provider 6. Planet Fitness Inc. (PLNT) - Service Provider 7. Alphabet Inc. (GOOGL) - Service Provider 8. PepsiCo, Inc. (PEP) - Manufacturer 9. International Paper Company (IP) - Manufacturer 10. 3M Company (MMM) - Manufacturer From this list of companies to research, choose the three which you find most interesting, then address items AJ (below) in your discussion. For reference in the instructions, consider your three firms to be Company I, Company II and Company III respectively. A. For Company I, list ten firms which you consider "comparable" to Company I. Create a single table of these ten firms showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA ratio for each (You can find ratios like these easily using public information sources like Yahoo Finance. For an illustrated example, click on this link: Yahoo finance has useful ratios...). B. Assess the value of Company I using these criteria: - What is the average and median Trailing P/E for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? - What is the average and median Price/Book for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? -What is the average and median Enterprise Value/EBITDA for the ten firms you chose as Value/EBITDA for the ten firms you chose as comparable to Company I? What do these suggest about the value of Company I? C. For Company II, list ten firms which you consider "comparable" to Company II. Create a single table of these ten firms showing the Trailing P/E, Price/Sales. Price/Book and Enterprise Value/EBITDA ratio for each. D. Assess the value of Company II using these criteria: - What is the average and median Trailing P/E for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? -What is the average and median Price/Book for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? - What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to Company II? What do these suggest about the value of Company II? E. For Company III, list ten firms which you consider "comparable" to Company III. Create a single table of these ten firms showing the Trailing P/E, Price/Sales, Price/Book and Enterprise Value/EBITDA ratio for each. F. Assess the value of Company III using these criteria: -What is the average and median Trailing P/E for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Price/Sales ratio for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Price/Book for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? - What is the average and median Enterprise Value/EBITDA for the ten firms you chose as comparable to Company III? What do these suggest about the value of Company III? G. Explain the limitations, problems and shortcomings of using multiples in developing an objective valuation. Be specific and use examples from your work on Company I, Company II and Company III. H. Examine the Statements of Cash Flows for Company I for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company I for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company I. I. Examine the Statements of Cash Flows for Company II for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company I for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company I. I. Examine the Statements of Cash Flows for Company II for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company II for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company II. J. Examine the Statements of Cash Flows for Company III for the past five years. Explain in detail the dividends, stock repurchases, and other payouts made to equity holders during that five-year period. If there were stock repurchases, what reasons did management give for the repurchase? What specific changes in retained earnings do you see on the balance sheets for those same five years, and how did those payouts specifically affect the retained earnings balances during that time? Explain and describe the per-share dividend history of Company III for the past five years. Explain the limitations, problems and shortcomings of using dividends in developing an objective valuation of Company III. These are the companies we are focusing on this term: 1. Target Corporation (TGT) - Retailer 2. Dollar General Corp. (DG) - Retailer 3. GameStop Corp. (GME) - Retailer 4. AMC Entertainment Holdings Inc. (AMC) Service Provider 5. Darden Restaurants, Inc. (DRI) - Service Provider 6. Planet Fitness Inc. (PLNT) - Service Provider 7. Alphabet Inc. (GOOGL) - Service Provider 8. PepsiCo, Inc. (PEP) - Manufacturer 9. International Paper Company (IP) Manufacturer 10. 3M Company (MMM) - Manufacturer Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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