Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the new finance manager of FD Group - a holding company with diverse investments in different industries. The Board of Director is asking

image text in transcribed
image text in transcribed
You are the new finance manager of FD Group - a holding company with diverse investments in different industries. The Board of Director is asking you for your opinion/analysis of the following holdings with their concerns. Note: Assuming market is efficient; therefore, market multiples have high predictive power Type your answer in the box below and return as "word" document. If you do not follow this format I would return your work to you for correction - you would face the same late penalty if you fail to re submit within deadline. [You may submit any other exhibits/attachments to support your works] Task 1: Health Industry - A vs B. Which firm has higher/lower/same market growth potential? Why? Which firm has higher financial strength to support growth and why? Type your answer below [Max: 50 words): Instruction: Focus on the numbers particularly market multiples (e... P/E, P/B, etc). Do not discuss industry characteristics e.g.. "Health" is important so the market will grow. Max: 25 Marks Max: 25 Marks Task 2: Beer Industry - C vs D. According to Porter's Business Strategy Volume (or low cost) /Niche / Differentiation. What strategy do you think and Dare pursuing? Type your answer below (Max: 50 words: Max: 25 Marks Task 3: Identify the top 2 "Cashcow firms as measured by FCF Le., able to generate the highest FCF and why? Type your answer below (Max: 50 words]: Max: 25 Marks Task 4: Identify the top "Dog" (as in BCG model) among the firms (A to P): Type your answer below | Max: 50 words) Assets B D F G H 1 J K L M N o P 548 242 128 70 7.2 512 22 Cash & Short-Term Investments Roosivabios Inventories Current Assets Other Current Assets-Total Net Fred Assets Assets Other Intangibles Investments & Advance Assets-Tota Liabilities & Equity 161 2.1 5.4 25 32.1 14 38 48.1 3.1 100.0 106 1.4 4.3 43 13 11.2 54.7 7.2 7.4 29 100.0 356 12.2 11.0 10.0 11.7 2.0 24 0.5 81.7 728 15.0 73 10 1.3 1.3 0.0 0.0 185 1000 1000 07.0 130 1.3 5,5 87.6 88 24 12 OD 1000 14.8 8.6 78.2 76 93 44 00 100.0 15.2 23 38.6 26 59.7 244 40 111 2.0 100.0 76 8. 79 3.0 27.2 50 5.4 14.0 0.0 100.0 5.6 0.3 6.6 10.0 109 2017 14.4 17.8 14.0 1:4 70 6,9 326 52.0 52,1 023 13.0 13.7 31 11.0 3.9 1 21.4 223 08 0.0 3.0 1000 1000 100.0 46 7.0 14 17.0 24.5 16.7 15 2.5 32.0 43.1 570 52.2 20 4,0 3.0 0.0 00 00 1000 100.0 08 40 0.5 0.7 66 101 0.1 76.8 0.7 1000 11 . 0.8 3.8 155 34.0 7.2 37.1 0,0 1000 0.0 222 0.1 100.0 180 9.B 0.5 28 22 9.1 10 13.0 Accounts Payable Dobtin Current Liabiti Income Taxes Payable Current Lother Current Total LT Dob Deleted Tax Labis Other Total Sacos Equity Total Liabilities & Equity Income/Expres 56 10 144 04 2.1 4.5 08 1.6 40.3 214 5.9 102 73 440 25. 100.0 7.4 9.1 0.0 00 0.0 17 13.7 122 244 51.2 0.0 10.7 1.9 9.5 07 35 271 165 725 1000 100.0 30.3 0.0 00 29.6 000 22 0.0 3.0 72.1 270 100.0 18.0 0.0 00 15.3 303 0.0 0.0 3.7 30 351 0.1 0.0 16.7 400 560 IV 02 1070 22.0 0.0 0.0 17.6 402 74 59 11.0 047 353 07 1.5 00 0.1 142 413 50 10D 75D 24.1 100.0 05 34 0.0 15 1.2 0 2.1 195 10.7 534 13 21.7 120 31 12.4 140 SOS 710 40.5 282 1000 100.0 17.0 6.5 1.0 11 00 10,1 5.1 35.7 25.5 . 28.0 10 25 32 380 59.7 411 403 1000 100.0 14 03 14 03 1 1.7 7.6 203 164 11.9 150 33 07 175 37.5 64.5 62.6 355 1000 100.0 35 0.0 315 40.5 100.0 587 631 17.01 100.0 100.0 100.0 100.0 100.0 385 100.0 610 30.0 24.8 25 100.0 40,7 50,5 23.0 7.0 20.2 179 76.1 445 4.5 Sales- Cost of Good Said Gross Profit SGLA Experte Depreciation Earnings Before & Nonoperating income Expo Interest income (Expense) Special income Expense) Pretax income income Tax Total Not Income (LOSS 100.0 111 380 45.7 9.7 325 11 07 163) 26.7 6.1 216 100.0 100.0 93.0 0.1 615 173 505 62 20 225 2.0 2.9 03 20 0.0 0.2 0.0 22.8 92 7.6 35 15.0 58 1000 1000 810 700 19.0 201 9.7 231 0.7 1.8 8. 42 0.4 0. 0.0 00 0.0 10.3) 9.0 46 15 62 33 1000 752 2 160 11 62 03 1.8 01 5.1 (8.4 8.5 1000 60.5 30.5 20 3.7 50 0.1 03 (0) 4.5 1,0 2.9 1000 753 247 120 6.1 60 04 33 (08) 29 08 0.1) 1000 $2.0 17 73 5.8 4.0 0.1 1.0 0.0 31 1.2 2.0 1000 81.6 464 $5.9 2.5 6.9 0,1 10 11.01) SI 1.0 1.4 1000 100.0 753 671 247 300 22.5 15 27 53 7.7 0.8 0.0 0.5 10 0.0 10.21 5.6 5.5 20 2.4 310 0.0 1000 405 BOS 397 4.1 15.0 0.4 1 40:1) 14.4 5.6 0.7 10.7 10.0) 27.1 06 1.1 0.0 112 3.0 84 19 010 19.7 7. 12.4 Ke OHN wa RA 180 You are the new finance manager of FD Group - a holding company with diverse investments in different industries. The Board of Director is asking you for your opinion/analysis of the following holdings with their concerns. Note: Assuming market is efficient; therefore, market multiples have high predictive power Type your answer in the box below and return as "word" document. If you do not follow this format I would return your work to you for correction - you would face the same late penalty if you fail to re submit within deadline. [You may submit any other exhibits/attachments to support your works] Task 1: Health Industry - A vs B. Which firm has higher/lower/same market growth potential? Why? Which firm has higher financial strength to support growth and why? Type your answer below [Max: 50 words): Instruction: Focus on the numbers particularly market multiples (e... P/E, P/B, etc). Do not discuss industry characteristics e.g.. "Health" is important so the market will grow. Max: 25 Marks Max: 25 Marks Task 2: Beer Industry - C vs D. According to Porter's Business Strategy Volume (or low cost) /Niche / Differentiation. What strategy do you think and Dare pursuing? Type your answer below (Max: 50 words: Max: 25 Marks Task 3: Identify the top 2 "Cashcow firms as measured by FCF Le., able to generate the highest FCF and why? Type your answer below (Max: 50 words]: Max: 25 Marks Task 4: Identify the top "Dog" (as in BCG model) among the firms (A to P): Type your answer below | Max: 50 words) Assets B D F G H 1 J K L M N o P 548 242 128 70 7.2 512 22 Cash & Short-Term Investments Roosivabios Inventories Current Assets Other Current Assets-Total Net Fred Assets Assets Other Intangibles Investments & Advance Assets-Tota Liabilities & Equity 161 2.1 5.4 25 32.1 14 38 48.1 3.1 100.0 106 1.4 4.3 43 13 11.2 54.7 7.2 7.4 29 100.0 356 12.2 11.0 10.0 11.7 2.0 24 0.5 81.7 728 15.0 73 10 1.3 1.3 0.0 0.0 185 1000 1000 07.0 130 1.3 5,5 87.6 88 24 12 OD 1000 14.8 8.6 78.2 76 93 44 00 100.0 15.2 23 38.6 26 59.7 244 40 111 2.0 100.0 76 8. 79 3.0 27.2 50 5.4 14.0 0.0 100.0 5.6 0.3 6.6 10.0 109 2017 14.4 17.8 14.0 1:4 70 6,9 326 52.0 52,1 023 13.0 13.7 31 11.0 3.9 1 21.4 223 08 0.0 3.0 1000 1000 100.0 46 7.0 14 17.0 24.5 16.7 15 2.5 32.0 43.1 570 52.2 20 4,0 3.0 0.0 00 00 1000 100.0 08 40 0.5 0.7 66 101 0.1 76.8 0.7 1000 11 . 0.8 3.8 155 34.0 7.2 37.1 0,0 1000 0.0 222 0.1 100.0 180 9.B 0.5 28 22 9.1 10 13.0 Accounts Payable Dobtin Current Liabiti Income Taxes Payable Current Lother Current Total LT Dob Deleted Tax Labis Other Total Sacos Equity Total Liabilities & Equity Income/Expres 56 10 144 04 2.1 4.5 08 1.6 40.3 214 5.9 102 73 440 25. 100.0 7.4 9.1 0.0 00 0.0 17 13.7 122 244 51.2 0.0 10.7 1.9 9.5 07 35 271 165 725 1000 100.0 30.3 0.0 00 29.6 000 22 0.0 3.0 72.1 270 100.0 18.0 0.0 00 15.3 303 0.0 0.0 3.7 30 351 0.1 0.0 16.7 400 560 IV 02 1070 22.0 0.0 0.0 17.6 402 74 59 11.0 047 353 07 1.5 00 0.1 142 413 50 10D 75D 24.1 100.0 05 34 0.0 15 1.2 0 2.1 195 10.7 534 13 21.7 120 31 12.4 140 SOS 710 40.5 282 1000 100.0 17.0 6.5 1.0 11 00 10,1 5.1 35.7 25.5 . 28.0 10 25 32 380 59.7 411 403 1000 100.0 14 03 14 03 1 1.7 7.6 203 164 11.9 150 33 07 175 37.5 64.5 62.6 355 1000 100.0 35 0.0 315 40.5 100.0 587 631 17.01 100.0 100.0 100.0 100.0 100.0 385 100.0 610 30.0 24.8 25 100.0 40,7 50,5 23.0 7.0 20.2 179 76.1 445 4.5 Sales- Cost of Good Said Gross Profit SGLA Experte Depreciation Earnings Before & Nonoperating income Expo Interest income (Expense) Special income Expense) Pretax income income Tax Total Not Income (LOSS 100.0 111 380 45.7 9.7 325 11 07 163) 26.7 6.1 216 100.0 100.0 93.0 0.1 615 173 505 62 20 225 2.0 2.9 03 20 0.0 0.2 0.0 22.8 92 7.6 35 15.0 58 1000 1000 810 700 19.0 201 9.7 231 0.7 1.8 8. 42 0.4 0. 0.0 00 0.0 10.3) 9.0 46 15 62 33 1000 752 2 160 11 62 03 1.8 01 5.1 (8.4 8.5 1000 60.5 30.5 20 3.7 50 0.1 03 (0) 4.5 1,0 2.9 1000 753 247 120 6.1 60 04 33 (08) 29 08 0.1) 1000 $2.0 17 73 5.8 4.0 0.1 1.0 0.0 31 1.2 2.0 1000 81.6 464 $5.9 2.5 6.9 0,1 10 11.01) SI 1.0 1.4 1000 100.0 753 671 247 300 22.5 15 27 53 7.7 0.8 0.0 0.5 10 0.0 10.21 5.6 5.5 20 2.4 310 0.0 1000 405 BOS 397 4.1 15.0 0.4 1 40:1) 14.4 5.6 0.7 10.7 10.0) 27.1 06 1.1 0.0 112 3.0 84 19 010 19.7 7. 12.4 Ke OHN wa RA 180

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management In Construction Contracting

Authors: Andrew Ross, Peter Williams

1st Edition

1405125063, 9781405125062

More Books

Students also viewed these Finance questions