Category: Finance

This case compares two similar but very different companies (all financials have been placed in Google Sheets here). P&G is often thought of as one of the great consumer product companies in the world. Colgate, relatively speaking, flies under the radar and is not as well known or respected. The case presents the history of the two companies and the recent issues at P&G. Be sure to address the following points in your write-up of the case:
Perform a DuPont analysis of P&G and Colgate from 2008 through 2012. Include sustainable growth (for the retention ratio, you can use (1 – payout-ratio), where the payout-ratio can be calculated as dividends-per-share/basic-earnings-per-share). For 2012 only, calculate each companies’ P/E and M/B (for P&G, assume a year-end stock price of $67.89). Assume that Net Income equals ‘net earnings attributable’ or ‘net income attributable.’
Evaluate the overall financial performance of the two companies. Which company is doing better? Are there interesting trends happening over this time period?
What can the DuPont analysis and other financial information tell us about the company’s marketing and operations? (the Note on the DuPont Analysis provides some guidance; use of outside resources is unnecessary). What do you think about Cook’s leadership at Colgate or Lafley’s and McDonald’s at P&G?
OPTIONAL (to increase your chance of receiving 4’s): Draw meaningful insights from a common size analysis of the companies and from a DuPont analysis of the companies’ segments.
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NOTE:
In some instances, financial figures or stock prices presented in the case may differ from what you can find online or in annual reports (since the case was written, financials may have been restated and stock “splits” can affect stock price units). If so, please use the financials from our case. There is no need to use outside data.
You are free to help each other and review each other’s work as long as no copying and pasting occur and you submit your own work.
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Be sure to follow these guidelines:
**Do not put your name anywhere **on the assignment or on shared exhibits (Forum will track your submission). Your assignment will be graded blindly.
Be sure you submit a single PDF on Forum (do NOT submit Zip files).
Assume your audience is knowledgeable about the accounting/finance concepts we’ve covered in class and is familiar with the case facts. Don’t waste words explaining what asset turnover is or what P&G sells. Jump right into the analysis. Also, there’s no need to replicate case exhibits (you may reference them directly).
Go deep. When formulating a response, ask why. Then ask why again and justify your explanation by citing case facts and material. Back up your explanations with evidence. Integrate numbers into your arguments.
Use no more than two significant digits for all numbers in the text and exhibits (12%, 3.5%, or 0.46%, not .12480294). Less is more. Displaying too many digits makes numbers hard to read and actually obscures their value and intuition.
All exhibits you create yourself and referenced in your write-up must be included in the write-up itself and be properly formatted. You must also include a link to all your exhibits so that your calculations can be seen and checked (only those exhibits that appear in the write-up and are explicitly discussed will be assessed). Place your link at the very beginning of the write-up and be sure to grant your professor and peer tutors viewing privileges. Follow these guidelines (e.g. avoid including numbers in a calculation cell but instead, reference inputs/assumptions cells that do contain numbers; use black text for calculations and blue text for inputs).
Check your spelling and grammar. Poor writing conveys carelessness and unprofessionalism.
The course-related LO’s that are #financials (x2) and #bizfunctions (x1) will be graded based on your answers to the 3 questions above, with each corresponding to a specific LO as described below. You should tag these LO’s and explain in detail how you used them.
In addition to the LO’s mentioned above, use and tag #breakitdown in the text wherever appropriate.
Add a word count at the end of the assignment (exclude exhibits, footnotes, and the bibliography).
For assignment deadline extensions please refer to the policies section written at the end of the course syllabus.
Assignment Information
Length:
1000 – 1250 words plus as many exhibits as necessary to show results of analysis.
Weight:
15%
Learning Outcomes Added
Financials: Evaluate business situations by identifying or calculating accounting and financial information.
BizFunctions: Analyze how improved operating, marketing, or other business functions can enhance financial performance.
links provided:
https://course-resources.minervaproject.com/uploaded_files/production/00230158-5804/assignment-1—procter—gamble-and-colgate-palmolive.pdf
https://docs.google.com/spreadsheets/d/1qwbg3Fz0SSsdmTNJkVbZziCMOxNA5q0h3vXRYHoVRh0/edit?gid=1098908424#gid=1098908424
https://course-resources.minervaproject.com/uploaded_files/production/00230028-2556/note-on-the-dupont-analysis.pdf

Part A: Discussion Board Posting Topic is “The Relationship between US Dollar and Stock Market, and its effect on your life”.
Please refer to the news article link below. (1-2 paragraph summary will do)
http://money.cnn.com/2015/03/16/investing/us-dollar-fastest-rise-40-years/ (Links to an external site.)Links to an external site.
Part B: PDF questions are attached. please show work

This assignment is an individual assignment.
The assignment must be submitted in WORD format only.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks will be deducted for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answers.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman font (size 12, double-spaced). No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

Assignment Purposes/Learning Outcomes

CLO1: Examine the role of the financial system in the economy and the rationale for financial intermediation.
CLO2: Demonstrate an awareness of the variety of financial instruments.
Attempt all Questions Maximum Marks :10

1.Discuss some of the manifestations of the globalization in the capital market of Kingdom of Saudi Arabia (2Marks)
2a. What is a simple loan?(1Mark)
2b. If Ahmed borrows 100SAR from his father and next year his father wants 110SAR back from him ,what is the yield to maturity on this loan? (2Marks)
3. “The more risk-averse people are, the more likely they are to diversify. “Is this statement true, false, or uncertain? Explain your answer(2Marks)
4.Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better or worse off? In what way?(3Marks)

Answers:
1.
2.
3.
4.

Part A: Discussion Board Posting Topic is “The Relationship between US Dollar and Stock Market, and its effect on your life”.
Please refer to the news article link below. (1-2 paragraph summary will do)
http://money.cnn.com/2015/03/16/investing/us-dollar-fastest-rise-40-years/ (Links to an external site.)Links to an external site.
Part B: PDF questions are attached. please show work

This assignment is an individual assignment.
The assignment must be submitted in WORD format only.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks will be deducted for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answers.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman font (size 12, double-spaced). No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

Assignment Purposes/Learning Outcomes

CLO1: Examine the role of the financial system in the economy and the rationale for financial intermediation.
CLO2: Demonstrate an awareness of the variety of financial instruments.
Attempt all Questions Maximum Marks :10

1.Discuss some of the manifestations of the globalization in the capital market of Kingdom of Saudi Arabia (2Marks)
2a. What is a simple loan?(1Mark)
2b. If Ahmed borrows 100SAR from his father and next year his father wants 110SAR back from him ,what is the yield to maturity on this loan? (2Marks)
3. “The more risk-averse people are, the more likely they are to diversify. “Is this statement true, false, or uncertain? Explain your answer(2Marks)
4.Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better or worse off? In what way?(3Marks)

Answers:
1.
2.
3.
4.

Part A: Discussion Board Posting Topic is “The Relationship between US Dollar and Stock Market, and its effect on your life”.
Please refer to the news article link below. (1-2 paragraph summary will do)
http://money.cnn.com/2015/03/16/investing/us-dollar-fastest-rise-40-years/ (Links to an external site.)Links to an external site.
Part B: PDF questions are attached. please show work

This assignment is an individual assignment.
The assignment must be submitted in WORD format only.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks will be deducted for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answers.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman font (size 12, double-spaced). No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

Assignment Purposes/Learning Outcomes

CLO1: Examine the role of the financial system in the economy and the rationale for financial intermediation.
CLO2: Demonstrate an awareness of the variety of financial instruments.
Attempt all Questions Maximum Marks :10

1.Discuss some of the manifestations of the globalization in the capital market of Kingdom of Saudi Arabia (2Marks)
2a. What is a simple loan?(1Mark)
2b. If Ahmed borrows 100SAR from his father and next year his father wants 110SAR back from him ,what is the yield to maturity on this loan? (2Marks)
3. “The more risk-averse people are, the more likely they are to diversify. “Is this statement true, false, or uncertain? Explain your answer(2Marks)
4.Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better or worse off? In what way?(3Marks)

Answers:
1.
2.
3.
4.

Please re-construct the Variations in Amortization Method I & II table, we used in the class (15 years amortization period, rates change in first 3 years and the rate is fixed from year 4) by changing the interest rates of year 1, year 2, year 3, year 4 and year 5 to 2%, 3% 4%, 5% and 6%, respectively. The first three years are interest only mortgage. The borrower starts to pay principal from year 4. The interest rate is then fixed at 10% from year 6 to year 19.
2. Please re-construct the Variations in Amortization Method III table, we used in the class (negative amortization, 10% contract rate, 15 years amortization period, rates change in first 3 years) by changing the interest rates of year 1, year 2, year 3, year 4, year 5 and Year 6 to 0.5%, 1%, 1.5%, 2%, 2.5% and 3%, respectively. The interest rate is then fixed at 11% from year 7 to year 25. Please also change the contract rate from 10% to 11%.
3. Please re-construct the Monthly Amortization, we used in the class (12% interest rate, 3 years amortization period) by changing the interest rate to 18% and amortization period to 33 years. Please report both the monthly cash flows (396 periods) and annual cash flows (33 periods) based on the monthly payments.
The file I uoloaded, contains the original version of the table, and the one I tried to done. Use whichever sheet to finish the task above.

Overview
In this milestone, you will begin to establish a personal financial plan that reflects what you have learned in this course so far. Now that you see the value of developing short-term, intermediate-term, and long-term financial goals, you will be able to plan appropriately, make adjustments to reflect your intentions, and outline steps to make necessary changes to achieve your goals. In this milestone, you will establish your personal financial goals and develop your personal financial statements: a balance sheet and a simplified income statement. You will submit this milestone in Module Three.
Note: If you do not wish to disclose personal financial information to your instructor, change your information or provide an alternative name with the information realistically portrayed. In doing so, the experience of preparing a financial plan for another person will prepare you to accurately complete your own plan when you are ready. Also, do not disclose the information of someone other than yourself; remember to keep private information private.
Directions
In this milestone, complete the worksheets listed below (which accompany your textbook) and a short summary. These worksheets can be found in the MyFinanceLab Multimedia Library section of your MyFinanceLab. You will go to the Pearson website to access these Worksheets.
Worksheet 1: Personal Financial Goals Worksheet
On this worksheet, you will identify, prioritize, and organize your personal financial goals. Note that establishing an emergency fund and eliminating credit card debt are listed as potential considerations. Referring to Chapters 1, 2, 5, and 6, contemplate how you might prioritize the use of your resources. Once completed, this worksheet will serve as the basis for your personal financial plan. (Note: The goals on the template are examples. If an example goal applies to your financial situation, use it. If it does not apply, delete it. Add goals that are specific to your personal financial situation.)
Worksheet 2: Financial Objectives Worksheet
On this worksheet, you will have the opportunity to rank the importance of personal financial objectives, specifically those that are longer term plans. Noting the relevancy to most people’s long-term plans, this document allows you to consider your existing and future anticipated requirements of resources for education, family, health, and retirement needs. Complete this comprehensive list and consider any relevant planning requirements that you will need to initiate now. If you have financial objectives that are not listed on the template, there is room at the bottom to add and rank your own objectives.
Worksheet 4: Balance Sheet Worksheet
On this worksheet, you will document your net worth by completing the required elements of a personal balance sheet. You may refer back to Chapter 2 of your textbook for an example of a completed balance sheet. There are two tabs, so ensure both are complete. Include all of your assets (everything you own) on the first tab and all of your liabilities (everything you owe) on the second tab. Consider that you will be revising your plan in the future according to anticipated changes to your financial situation or in future weeks when you consider the impact of home ownership and other major financial decisions. As you are completing the balance sheet, try to identify potential future changes to your assets and liabilities.
Worksheet 5: Simplified Income Statement Worksheet
On this worksheet, you will determine how much of your income is available for savings and investment to fund your financial goals. You will do so by completing the required elements of a personal income statement. See Figure 2.6 in Chapter 2 of your textbook for an example of a completed personal income statement. Include your take-home pay (adjust for income taxes) and your total living expenditures. Consider that you will be revising your plan in the future according to anticipated changes to your financial situation or in future weeks when you consider the impact of home ownership and other major financial decisions. As you are completing the simplified income statement, try to identify potential future changes to your income and expenses.
Short Paper: Write a short paper (2–3 pages). Include the following rubric criteria:
What did you observe while completing these worksheets in terms of your personal financial challenges and opportunities?
Explain each worksheet, specifically, indicating precise line items that concern you.
Specifically discuss your emergency fund. Do you have a sufficient emergency fund? If not, what steps will you take to establish a sufficient emergency fund?
Specifically discuss your credit card debt. Do you have outstanding credit card debt? If so, what steps will you take to eliminate this debt?
What to Submit
Submit a 2- to 3-page Microsoft Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Use discipline-appropriate citations. Your supporting research should be as up to date as possible. Any news stories, press releases, or additional sources must be dated within the last 60 days. Company data should be no more than one year old. Using older data may result in being asked to resubmit your work. Submit Worksheets 1, 2, 4, and 5.

Cash Flow Indicator & Investment Valuation Ratio. Discuss which company is more likely to have satisfied stockholders. Support your conclusion. Which company is doing better, why or why not?