## This assignment will reinforce your ability to understand the importance of cash

This assignment will reinforce your ability to understand the importance of cash flows, forecasting, and discounted cash flow analysis using cost of capital
Choose ONE PUBLIC company (my choice is company LVMH)
Use the Discounted Cash Flow (DCF) Template (from Finbox)
https://finbox.com/
See the following slides for how to use Finbox and which template to choose
You just need to enter the Company ticker or name – and Finbox will automatically calculate the DCF for you
In a paper with a max of 800 words, explain, analyze and provide your own views of the company fundamentals using your own research, SWOT or Porter Analysis. Analyze the historical trends and which financial ratios are most important or are changing. Explain:
a. Are your forecast sales rising/falling and why?
b. Do you have expenses rising/falling and why?
c. Does the firm need more/less working capital (inventory, etc.)?
d. Is the firm spending more/less on capital expenditures?
e. How is the competitive environment vs your company?
Explain if the stock is over or undervalued, and if the stock is a Buy, Hold, or Sell.

## Cost of Capital Instructions Answer the following questions in a separate docume

Cost of Capital
Instructions
Answer the following questions in a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.
Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a \$2.50 per share dividend at \$25 a share. The common stock of Bad Boys, Inc. is currently selling for \$20.00 a share. Bad Boys, Inc. expects to pay a dividend of \$1.50 per share next year. An equity analyst foresees a growth in dividends at a rate of 5% per year. The Bad Boys, Inc. marginal tax rate is 35%. If Bad Boys, Inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is Bad Boys, Inc.’s cost of capital?
If Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is Bad Boys, Inc.’s cost of capital?

## include comparison table and financial analysis on LVMH and Kering  from 2017-20

include comparison table and financial analysis on LVMH and Kering  from 2017-2020
use the following links as source
https://www.morningstar.com/stocks/pinx/lvmhf/quote
https://www.morningstar.com/stocks/pinx/ppruf/quote
see attached excel and word document

## Instructions Please read the articles Greed Cycle , Dumbest Idea in the World ,

Instructions
Please read the articles Greed Cycle , Dumbest Idea in the World , and Maximizing Shareholder Value: The Goal That Changed Corporate America . After you have read them, write a 4-6 page paper addressing the following questions.
Greed Cycle Questions:
What has been the changing nature of the goal of the corporation?
What is the relationship between agency problems and the goal of shareholder wealth maximization?
What are successful and unsuccessful ways in which agency problems between managers and owners have addressed?
What is the relationship between agency conflicts and options given to managers?
What is your opinion of the best goal for corporations?
Dumbest Idea. . . Questions:
What is the Dumbest Idea?  Why?
How has the focus on SH wealth changed the way success is measured?
How has the time perspective been altered by the focus on SH wealth?
What alternative goals are suggested?
Maximizing Shareholder Value:  The Goal that . . . Questions:
Describe the philosophical changes that have occurred as a result of this change in goal.  How has this impacted behavior?

## nstructions Please read the articles Greed Cycle , Dumbest Idea in the World , a

nstructions
Please read the articles Greed Cycle , Dumbest Idea in the World , and Maximizing Shareholder Value: The Goal That Changed Corporate America . After you have read them, write a 4-6 page paper addressing the following questions.
Greed Cycle Questions:
What has been the changing nature of the goal of the corporation?
What is the relationship between agency problems and the goal of shareholder wealth maximization?
What are successful and unsuccessful ways in which agency problems between managers and owners have addressed?
What is the relationship between agency conflicts and options given to managers?
What is your opinion of the best goal for corporations?
Dumbest Idea. . . Questions:
What is the Dumbest Idea?  Why?
How has the focus on SH wealth changed the way success is measured?
How has the time perspective been altered by the focus on SH wealth?
What alternative goals are suggested?
Maximizing Shareholder Value:  The Goal that . . . Questions:
Describe the philosophical changes that have occurred as a result of this change in goal.  How has this impacted behavior?

## Instructions Please read the articles Greed Cycle , Dumbest Idea in the World ,

Instructions
Please read the articles Greed Cycle , Dumbest Idea in the World , and Maximizing Shareholder Value: The Goal That Changed Corporate America . After you have read them, write a 4-6 page paper addressing the following questions.
Greed Cycle Questions:
What has been the changing nature of the goal of the corporation?
What is the relationship between agency problems and the goal of shareholder wealth maximization?
What are successful and unsuccessful ways in which agency problems between managers and owners have addressed?
What is the relationship between agency conflicts and options given to managers?
What is your opinion of the best goal for corporations?
Dumbest Idea. . . Questions:
What is the Dumbest Idea?  Why?
How has the focus on SH wealth changed the way success is measured?
How has the time perspective been altered by the focus on SH wealth?
What alternative goals are suggested?
Maximizing Shareholder Value:  The Goal that . . . Questions:
Describe the philosophical changes that have occurred as a result of this change in goal.  How has this impacted behavior?

## Write a post on your thoughts on The Merits of Net Present Value Rule. Why is th

Write a post on your thoughts on The Merits of Net Present Value Rule. Why is this rule superior? Why is that so crucial in Finance? What are some obvious pitfalls you can think of that may occur when NPV is not used as the main rule for capital budgeting? What are some obvious drawbacks to using the other rules? How is risk assessment linked to the choice of capital budgeting criteria? Please also post an article (journal article or one in the popular press) that you believe relates to the topic. Please also write a paragraph explaining the linkage and identify an equation we are using that you believe would be used in the context of the article.

## We are all aware of the financial crisis that engulfed the economy during 2008.

We are all aware of the financial crisis that engulfed the economy during 2008.  Michael Lewis is the author of several books including Liar’s Poker, Moneyball, The Big Short, and Boomerang.  He has written two very insightful articles detailing the reasons for the crisis and the ways to repair the system.
Please read “The End of the Financial World as We Know It” and “How to Repair a Broken Financial World.”  These articles were written in January of 2009. Discuss three (3) things you learned from the articles and share them with your classmates.
In addition to reading the two Lewis articles linked above, please find one other article/video/ etc. on the financial crisis and summarize it for the class.  This information can come from articles (use reputable sources–NYT, WSJ, Financial Times, etc.), from videos, news programs, etc.  Several sources can be found in the Instructional Materials for Week One.

## Overview: Liquidity Ratios This week we evaluate the company’s liquidity and ass

Overview: Liquidity Ratios
This week we evaluate the company’s liquidity and asset utilization ratios and compare them to the industry average. On liquidity ratios, lenders, creditors, and suppliers find liquidity ratios quite useful in deciding whether or not to grant credit. On the asset utilization ratios, this category of ratios evaluates how effectively the company is using its investment in assets to generate sales. Be sure to review the Financial Ratios Guidelines document in the Week 5 Content area that will guide Discussions 5-8.
If you wish to change companies, go to the discussion thread for Discussion 1 to reserve your new company making sure no one else has already reserved it. If you decide to stay with the same company you used for Discussion 1, there is no need to re-reserve it.
Your task is to prepare a report with the required information provided below. Use the same heading names (in bold) before presenting the information as requested.
Name of Company and Ticker Symbol: Company name, ticker symbol
10-K Report: Paste the direct URL to the company’s most recent 10-K Report
Company Website: Paste the URL to the company’s website
Industry name and NAICS Code: Provide the name and NAICS code associated with the Industry Average data. (1 point)
Liquidity Ratios: Follow the formatting in the example below to present the data. See the sample eStatement Studies document posted under the Activities tab for help in finding the industry average data needed for this assignment.
20XX
20XX
20XX
Industry Average*
Current Ratio (CA/CL)

Quick Ratio [(CA-Inventory)/CL]

* list all 3 industry average figures for each ratio
Asset Utilization Ratios: Follow the formatting in the example below to present the data. See this sample eStatement Studies document for help in finding the industry average data needed for this assignment.
20XX
20XX
20XX
Industry Average**
Inventory Turnover (CGS*/Inv.) )

Fixed Asset Turnover (Sales/Net PPE)

Total Asset Turnover (Sales/Total Assets)

*use Cost of Goods sold to make the comparison to the industry average more accurate.
** list all 3 industry average figures for each ratio
Evaluation: Share what we learn from the data and information collected for this discussion. Interpret each of the ratios and review the Financial Ratios Guidelines document for direction. Do you see any red flags? Does it appear as though the company may have difficulty paying its bills on time? Does it appear as though the company is making efficient use of its assets to generate sales? Sufficiently examining the data and information collected will likely require at least 250 words.

## 1.    What is going on at American Greetings? a.    Discuss the competitiveness

1.    What is going on at American Greetings?
a.    Discuss the competitiveness of the industry.
b.    Discuss the factors that drive the fundamental value of American Greetings.
2.    The shares of American Greetings are currently trading at an EBITDA multiple that is at the bottom of its peer group.  Do you think a 3.5 times multiple is appropriate for American Greetings?  If yes, why? If not, why not? Whether you think it is appropriate or not what alternative multiple of EBITDA do you think could be used and why? What is the implied share price that corresponds to that multiple?
3.    Please model cash flows for American Greetings for fiscal years 2012 through 2015.  Using a marginal tax rate of 40% and a market risk premium of 5%. What is your estimate of the appropriate discount rate for the free cash flow forecast? Based on a discounted cash flow model, what is your best estimate of the implied enterprise value of American Greetings and the corresponding share price? Discuss your results and the implications for the decision facing American Greetings.
4.    What are the key drivers of value in your model and why? Do you recommend repurchasing shares? Provide specific reasons to support your recommendation.