FOR ALL BELOW QUESTIONS, EXPERT HAS TO PROVIDE FEEDBACK TO THE POST OF ANOTHER CLASSMATE. ALL THE QUESTIONS ARE SOMEONE ELSE POST, EXPERT HAS TO PROVIDE COMMENTS, INSIGHTS, PROVIDE WITH VALUE ADDED...

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FOR ALL BELOW QUESTIONS, EXPERT HAS TO PROVIDE FEEDBACK TO THE POST OF ANOTHER CLASSMATE. ALL THE QUESTIONS ARE SOMEONE ELSE POST, EXPERT HAS TO PROVIDE COMMENTS, INSIGHTS, PROVIDE WITH VALUE ADDED COMMENTS. Expert can find the question for below in the other attachment “week 5 accounting 12” Question 1: (Hebe: 150 words) 1. For this question we will be using P/E ratio. For the company assigned to me, Novartis AG ADR (NVS), Morningstar has listed a P/E ratio of 7.60% (Morningstar, n.d.). 2. Compare the P/E ratio of your company with the industry average or with major competitors. Is there a difference between these numbers? Is the stock overvalued, undervalued, or properly valued? Why?  In accordance with your findings, is it reasonable to buy the stock? Please explain your answers. Novartis’ major competitors are Johnson & Johnson (JNJ) and GSK PLC (GSK). According to Morningstar, JNJ has a P/E of 22.90%, while GSK has a P/E of 16.60% (Morningstar, n.d.). In the case of these two companies, the difference in P/E with Novartis is quite significant. GSK’s P/E is more than double than that of Novartis, while JNJ’s P/E is three times higher. The industry average P/E ratio for major pharmaceuticals is 24.81%, which means that the P/Es of all three companies are undervalued. A low P/E means that investors are not willing to pay more for every dollar of earnings that the company produces. With a value of 7.6, Novartis P/E is clearly undervalued; especially if considered against its peers (Morningstar, n.d.). This undervaluation could be taken as a good opportunity for investment and be interpreted as indicative of consistent growth and a profitable investment long term. A lower P/E is still a reasonable investment option but before committing to it, it might be worth to consider other ratios, like the growth rate (PEG), to get a better picture of the company’s expected growth (Ramos, 2017). Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace. Even though, I do not find bond valuation an easy topic to understand and let along master, this week’s readings have further my knowledge about investment and its worthiness. We have learned once again how ratios can assist in an investment decision and how, if considered together with other ratios and analyzed in context, they can offer a better insight into the company’s situation. Personally, I found it useful to evaluate investment option and analyze the expected long-term growth of a company. Question 2: (Cesar: 100 words) Step 1: Question 1. The Chicago Rivet & Machine Co. Price-to-Earnings ratio of 15.4x signals an opportunity to buy the stock since the company's stock is undervalued as compared to the industry's average PE Ratio of 27.4x. This stock is regarded by investors as a value stock hence company would give a higher yield in terms of dividends to investors. Question 2. The Cynergistek Inc's PE Ratio of 6.9x is also a signal for an opportunity to buy since the stock is underpriced comparable to the industry average PE ratio of 23.8x. This stock would promise a higher dividend to yield hence a good investment to investors who buy and hold until Ex-dividend date. Question 3. (100 words)  The Katana Capital Limited Stock with a PE ratio of 34.3x signals an opportunity sell the stock since it is overvalued comparable to the industry average of 21.7x. This shows that the stock would yield a higher capital gain to investors if it was sold immediately.  Step 2: -Corning INC current PE ratio is 25.52 while that of its closest competitor; Thermo Fisher Scientific Inc. 26.12. Corning INC PE ratio is slightly lower compared to its peer competitor. This would indicate that Corning INC stock is slightly undervalued compared to its competitor's stock. The lower PE ratio would signal a buying opportunity since the Corning stock would give a higher dividend yield compared to Thermo Fisher Scientific INC stock. -I believe that in this week the main difference between preferred and common stock Is that preferred stock gives no voting rights to shareholders, like some big companies while common stock does. Preferred stocks are hybrid securities that have the characteristics of both bonds and stock. The have a dividend priority over common stocks. I don’t have any stocks but, I know people that invest in stocks and the way the market is in current time they are losing lots of money not knowing when the market will raise. Question 3 (Shelby: 100 words) TOPIC 1: Connecting with Customers PROMPT: Describe a story (from a novel or even a TV show) that held your attention where you couldn't wait to see what happened next. Now, consider how the elements of a brand tell a story. How do you connect with perceptions of your favorite brands? Do they tell a story? The first two seasons of Apple TV’s “Ted Lasso” were bingeable watching. Although the plot was in many ways fairly predictable, the relatability and likability of all the characters—even the grumpier ones—made viewers want to watch episode after episode to know what happens. In short, the characters were so well constructed that audiences immediately cared about them; they became viewers’ friends. The immediate comfort and familiarity viewers felt toward the characters made them want to watch episode after episode, to tune in to see what’s new in the characters’ lives, just like someone would do with personal friends. The characters’ ups and downs in each episode, their growth and their relationships, form storytelling elements beyond the explicit plot arc of the episode and keep viewers coming back. Brands can also employ these elements to create a sense of personal relationship with customers, which in turn encourages customers to return and buy again and again. In essence, branding is the unique set of values a brand stands for in customers’ minds (NorwichBSchool, 2011, 0:17). This communication of values is not a one-way street, however. What the customer brings to the relationship matters in building their perception of the brand, or brand image, and that brand’s space in the customer’s mind (NorwichBSchool, 2011, 2:25; UMGC, 2022, para. 17). The elements of branding include personality, image, identity, differentiation, positioning, and communication (UMGC, 2022, para. 2). Together, these elements build a story that, like a TV show, book, or movie, keep customers hooked. Like the beloved characters of “Ted Lasso,” effective branding is memorable and likable with a distinct personality. Memorable brands are instantly recognizable, and likable brands evoke positive associations upon recognition (UMGC, 2022, para. 10). These two criteria can be achieved by developing a distinct personality for the brand, much like creating a media character. To develop a distinct personality, marketers need to build communication tools that encourage customers assign specific human traits to the brand (UMGC, 2022, para 16). Further, effective branding should be adaptable to keep up with changing trends and expectations but also consistent enough to be long-lasting. A brand’s identity is the customers’ perceptions of the brand’s uniqueness and distinctiveness (UMGC, 2022, para. 20). It is aligned with the company’s core values (UMGC, 2022, para. 21). Like a media character, customers must know what to expect from the brand—viewers would immediately recognize and be uncomfortable with a character that acts out of character in a situation. The same principle applies to solid brands. Like each character in a show, movie, or book must be distinct with its own personality and relationship with the viewer, a brand must also establish a unique brand differentiation and positioning. Brand differentiation is how the brand sets itself apart from its competition (UMGC, 2022, para. 24). Brand positioning is the unique space the brand occupies in target customer’s minds (UMGC, 2022, para. 28). These two elements go hand in hand to help customers recognize and buy into the brand’s value in their own lives. Branding also involves customers’ perceptions of a brand’s authenticity and their trust in such. If a character in a book, TV show, or movie were to feel forced in its creation, viewers would not be able to form a personal relationship with the fake-feeling character. The same goes for brand communications. Brand communication is the company’s way to communicate its care values to the customers (UMGC, 2022, para. 32). To build the personal relationship with customers, now more than ever, brand communications are a conversation between the brand and target customers via social media, employee conversations, and customer reactions to outbound communications (UMGC, 2022, para. 33-34). Altogether, these elements tell a story about the brand to target customers, and customers perceive the story and interpret it within their own personal context. Like watching a show or movie or reading a book, the unique, distinct, and authentic personality of the characters creates a sense of familiarity and personal relationship between the consumers and the creators. Viewers eagerly tune in to see what happens with their character friends, becoming, essentially, loyal, repeat customers. Question 4: (Ashley 100 words) A story line I recently came across is from a show my family and I are currently watching called The Boys. This show is not my normal type of show but after lots of persuasion from my partner I gave in and decided to give it a watch and what a show it is! At first, I thought the show was a typical superhero show which I feel I have seen many times before. This show had a unique storyline that has captivated me through 3 seasons so far. In the first season, they began with the superhero "fast-guy" (the Flash based character) at top speed, running "through" a woman that had just been proposed to. The visuals included her blood and guts being strewn across the ground and screen with her hand being the only intact part of her body. The hand had the ring her fiancée used to propose, and he was still holding it (her hand) as the camera panned out to his horror-stricken face. My jaw hit the floor and I was immediately hooked and not disappointed at all.  When brands tell a story in marketing, I tend to get very literal which is a downfall of mine. I notice the best brand stories are the simplest and the easiest for me not to dissect. For example, the video for Colgate explaining their brand music choice mentioned their brand values to be "Uplifting, Courageous, and big hearted"... My first thought with this was what does either of those things
Answered 1 days AfterJun 19, 2022

Answer To: FOR ALL BELOW QUESTIONS, EXPERT HAS TO PROVIDE FEEDBACK TO THE POST OF ANOTHER CLASSMATE. ALL THE...

Rochak answered on Jun 20 2022
75 Votes
1. The P/E (Price to Earnings Ratio) mentioned by you is in percentage, but P/E is a multiple which is denoted as integers and not percentages.
A couple of insights which I find quite intimating and co
rrect from your response is, that you mentioned right that a low P/E can be considered as a good opportunity, and the backing was even stronger than for investment one cannot just look at the P/E and invest therefore more ratios should be looked at before investing.
It will make more sense to say that looking at the fundamentals of the company, and the future scope of the industry before investing will be a good way to go about investing in a low P/E company.
2. The interpretation of P/E of giving a higher dividend yield is wrong as though you will be paying less for the earnings the company is generating but it does not always happen that you get equal or more dividend from a company which has a lower P/E. Also, an investment opportunity, i.e., buying opportunity is not looked at only from the perspective of the dividend yield which you will get because even though one can get a higher dividend yield by investing in a lower P/E company, if we consider why the P/E is less there can be other aspects as well like low growth or negative growth and if this is the case the stock price will decline in the future and therefore a higher dividend yield will also not be able to compensate for the loss. Therefore, your understanding is correct, but a broader look has to be taken before investing.
3. This is correct that a personal touch gets you more response than any expensive advertisement and brand campaign, and indeed the example was on point of Apple TV’s “Ted Lasso” which is a wonderful series of storytelling where the connection was very direct and if the same relationship can be targeted by any brand with its customers it will be a game changer. The story connects a customer more to the brand than any campaign can ever do and you said it right that the target customer cares more about the story...
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