Question
What has been the percentage change in Total Revenue, Gross Profit, Operating Income (EBIT) and Net Income for each of the most recent four years?
What has been the percentage change in Total Revenue, Gross Profit, Operating Income (EBIT) and Net Income for each of the most recent four years? Please comment on the trends. 2.) What has been the company's Current Ratio and Quick Ratio for each of the past five years, and how would you interpret the results? 3.) What has been the company's Total Asset Turnover and Inventory Turnover for the past five years? In your own words, how would you interpret the results? 4.) What has been the Return on Assets (ROA) and Return on Invested Capital (ROIC) for the past five years? How would you interpret these ratios? 5.) What has been the company's Times Interest Earned Ratio and Debt-to-Equity ratio over the past five years. Please comment on the results. What is the yearly trend for ROE using the Dupont analysis for the past five years? 6. Please show the breakout and determine whether profitability, asset management, or leverage was the biggest factor to the change in ROE. If the company wanted to increase its ROE, what could it do?
The stock price for Campbell was $46.20, $39.45, $45.00, $52.61, and $41.73 for fiscal years ending 2017, 2018, 2019, 2020, and 2021, respectively. 7.) What was the P/E ratio for the past five years and how would you interpret the trend? That is, what's happening to its perceived value? 2 8.) Using the same stock prices above and using the shares outstanding for each respective year what was the company's market capitalization? Comment on the company's market capitalization trend. What was the Market-to-Book Ratio for the past five years? 9.) What is Free Cash Flow for fiscal year ending 2021? Assume Free Cash Flow will stay constant forever (in perpetuity) and an investor's required rate of return is 7.50% per year, what is the total value the investor would place on the company? What is the intrinsic price value per share based on the free cash flow method?
10.) The company wishes to refinance its $5.0 billion bonds; therefore, it will reissue bonds. The structure of the new bonds is as follows: Maturity = 25 years, Coupon Rate = 3.75%, and they have a face value of $1,000 each. Similar bonds in the market have a yield-to-maturity (YTM) of 2.50%. What is the price of each bond? Are they trading at a discount or premium? 11.) Assume ten years have passed and the YTM in the market has risen to 5.25%. What is the price of the bonds? Are they trading at a discount or premium? 12.) Using the the same information as question 11, now assume that the bonds are semiannual bonds. What is the new price of each bond? 13.) Assume Campbell took a $300 million loan and the agreement is to amortize it over 10 years. It is paying 4.0% on the loan. Please workout an amortization schedule. 14.) As part of the company's strategic plan it plans to purchase a small organic soup company. The company estimates that the total value of the organic store in 15 years will be $50 million, and it can earn 5.5% on its investment. How much will the company need today in order to have $50 million available in 15 years? Assuming the company wants to save money every year instead, how much will it need to invest every year for the next 15 years to have $50 million available in 15 years?15.) Using Campbell's 2021 10-K (annual report) and in your own words please describe, show, and explain particular items (e.g., major risks, competition, etc.) you are seeing about the company. Additionally, point out at least ten things you did not know about the company based on the 10-K. Lastly, research the company and in your opinion do you feel the company is socially responsible? Please provide concrete evidence
Campbell Soup Reference https://s27.q4cdn.com/108522393/files/doc_financials/2021/ar/Campbell-Soup-Company-2021-Annual-Report.pdf
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