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You have been hired as a financial analyst by a private equity firm. Your firm is investigating the possibility of acquiring either Lululemon Athletica Inc.

You have been hired as a financial analyst by a private equity firm. Your firm is investigating the possibility of acquiring either Lululemon Athletica Inc. (LULU) or Michael Kors Holdings Limited (KORS). Your assignment is to address the issues found below. The decision makers determine a price per share for the stock in part based on the information that you provide. (You will not actually determine a price.) For the computations, use the information found on the Yahoo! Finance web pages, Guruficus.com, or Morningstar.com for the two companies. The numbers used would be for the financials of January 28, 2018 for LULU and March 31, 2018 for KORS (fiscal year 2017) and January 29, 2017 for LULU and April 1, 2017 for KORS (fiscal year 2016). Other computations and issues, which require information that is more current, is found on these webpages. For discussion questions, a good source of information is found in the 2017 Annual Report, as well as recent articles concerning LULU and KORS. The link to the companies official web sites can be found in the Profile page on Yahoo! Finance. Your grade for the qualitative answers depends on the quality and quantity of relevant information, as well as the quality of writing. a) Discuss for either KORS the risks that the company needs to consider in conducting its operations. b) Indicate the Beneisch M-Score and Piotroski F-Score for both LULU and KORS. Explain the significance of these financial metrics. c) For both LULU and KORS explain whether you believe if they can take on more debt. Use computations to support your conclusion. d) Compare the inventory positions of LULU and KORS. e) Construct the DuPont Identity for both LULU and KORS. Explain your results. f) Determine the MVA for LULU and KORS and discuss the results. g) Determine the EVA for both LULU and KORS and discuss the results. Assume that LULUs cost of capital is 4 percent and 5 percent for KORS. Use a tax rate of 25 percent for LULU and 28 percent for KORS. Discuss the results. h) Determine the free cash flow for 2017 for both LULU and KORS. Comment on the results. i) Compare and discuss the PE ratios for LULU and KORS. j) Discuss the overall financial health of LULU and KORS. k) After the final price is determined for LULU and KORS, do you believe that this is evidence of an efficient or inefficient market? Explain.

*** Are you able to provide the individual values of variables please?

Lululemon Athletica and Michael Kors Holding are the two companies. Please do both were it says both. If not possible, Lululemon Athletica only.

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