Answer the following question for the company : NIKEMicrosoft Word - Group Assignment 2 MBA ...

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Answer the following question for the company : NIKE

Microsoft Word - Group Assignment 2 MBA Financial Management – Individua Assignment This is an individual assignment. In this assignment you will be applying the concepts you learned in class to a company of your choice. Please submit your work in word with excel pasted into your document. See myCourses for exact date of submission. Use the financial statements of the last four years. The report should include the following: Part #1. Operational Performance Use the ratios we discussed in class and listed in your textbook to analyze your company historical performance & liquidity and compare it to industry averages. Part #2 Sustainable Growth Rate Analyze your company’s sustainable growth rate (and its components). Indicate where does your company stands in that regard. Based on what you learned about your company’s growth forecast their financial needs. Topic #3 Capital Structure Perform an analysis of your company’s financing strategy/capital structure. Explain the different financial instruments used by your company (equity, debt, etc.). Analyze historical ROE and ROIC performance, and determine how much of ROE is contributed by operational performance & how much is contributed by capital/financing structure. Topic #4 Cost of Capital Calculate your company’s cost of capital. Indicate how cost of debt & cost of equity are calculated Topic # 5 Valuation Perform a valuation of your company’s equity using the models you learned in class. For discounted cash flow valuation technique assume a growth rate of sales equal to the historical average growth rate. Compare your estimation to actual share prices and indicate whether your company is overvalued or undervalued.

individual-assignmentreport-analysis-n03iku4g.pdf

Tanmoy · Accepted Answer

Sheet1
		Pfizer - Income Statement
		Fiscal year is January-December. All values USD Millions.	2019	2018	2017	2016
		Sales/Revenue	41,172	53,647	52,546	52,824
		Sales Growth	-23.25%	2.10%	-0.53%	-
		Cost of Goods Sold (COGS) incl. D&A	12,623	16,008	15,777	15,954
		COGS excluding D&A	6,828	9,624	9,508	10,197
		Depreciation & Amortization Expense	5,795	6,384	6,269	5,757
		Depreciation	1,333	1,491	1,511	1,701
		Amortization of Intangibles	4,462	4,893	4,758	4,056
		COGS Growth	-21.15%	1.46%	-1.11%	-
		Gross Income	28,549	37,639	36,769	36,870
		Gross Income Growth	-24.15%	2.37%	-0.27%	-
		Gross Profit Margin	-	-	-	-
		SG&A Expense	21,038	22,350	22,378	22,596
		Research & Development	8,364	7,967	7,645	7,840
		Other SG&A	12,674	14,383	14,733	14,756
		SGA Growth	-5.87%	-0.13%	-0.96%	-
		EBIT	19256	13,201	13575	14,274
		Unusual Expense	4,079	3,622	2,243	6,654
		Non Operating Income/Expense	9,384	1,201	1,036	1,447
		Non-Operating Interest Income	225	333	391	470
		Equity in Affiliates (Pretax)	17	-	-	-
		Interest Expense	1,573	1,316	1,270	1,186
		Interest Rate	8%	10%	9%	8%
		Interest Expense Growth	19.53%	3.62%	7.08%	-
		Gross Interest Expense	1,661	1,389	1,342	1,247
		Interest Capitalized	88	73	72	61
		Pretax Income	11,485	11,885	12,305	8,351
		Pretax Income Growth	-3.37%	-3.41%	47.35%	-
		Pretax Margin	-	-	-	-
		Income Tax	618	706	-9,048	1,122
		Income Tax - Current Domestic	-2,208	-2,358	14,448	290
		Income Tax - Current Foreign	2,418	2,830	2,709	1,532
		Income Tax - Deferred Domestic	1,271	792	-26,163	-525
		Income Tax - Deferred Foreign	-863	-558	-42	-175
		Income Tax Rate	5%	6%	74%	13%
		Consolidated Net Income	10,867	11,179	21,353	7,229
		Minority Interest Expense	29	36	47	31
		Net Income	10,838	11,143	21,306	7,198
		Net Income Growth	-2.74%	-47.70%	196.00%	-
		Net Margin	-	-	-	-
		Extraordinaries & Discontinued Operations	5,435	10	2	17
		Extra Items & Gain/Loss Sale Of Assets	-	-	3	-
		Discontinued Operations	5,435	10	-1	17
		Net Income After Extraordinaries	5,403	11,133	21,304	7,181
		Preferred Dividends	1	1	1	1
		Net Income Available to Common	16,272	11,152	21,304	7,214
		EPS (Basic)	2.87	1.87	3.52	1.17
		EPS (Basic) Growth	53.34%	-46.87%	200.85%	-
		Basic Shares Outstanding	5,569	5,872	5,970	6,089
		EPS (Diluted)	2.87	1.87	3.52	1.17
		EPS (Diluted) Growth	53.66%	-46.95%	200.29%	-
		Diluted Shares Outstanding	5,675	5,977	6,058	6,159
		EBITDA	13,306	21,673	20,660	20,031
		EBITDA Growth	-38.61%	4.90%	3.14%	-
		EBITDA Margin	-	-	-	-
		EBIT	-	15,289	-	14,274
		Pfizer - Balance Sheet
		Assets
		Fiscal year is January-December.

Microsoft Word - Group Assignment 2 MBA Financial Management – Individua Assignment This is an individual assignment. In this assignment you will be applying the concepts you learned in class to a...

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