GENERAL MOTORS FINANCIAL ANALYSIS CASE

Project Outline GM (GENERAL MOTORS) 

 

The most recent data should be used in your analyses (i.e., data from the most recently-filed Form 10-K).  For all calculations, show each formula used as well as the numbers used in the formula.  Explain any assumptions made and provide justifications for your assumptions.  Cite any sources used other than the company’s SEC filings.  The following is an outline for your individual project:

I.               Governance and Communication Analysis

a.    Answer and discuss the importance of the following:

i.     Who is the company’s current CEO?  Is he or she also the Chair of the Board?

ii.     Who serves on the board’s Audit Committee?  How many members are Financial Experts?  What experience qualifies them for that designation?

iii.     What was the CEO paid last year?  What portion of his or her total pay was in the form of bonus?  In the form of stock-based awards?  What performance measures were used to determine the CEO’s pay?

iv.     Who or what entity holds the highest percentage of the company’s stock?  Are most of the beneficial owners reported individuals or institutions?

v.     How many common shares are outstanding? Is there more than one class of common stock outstanding?  If so, how many votes do shares of each class get?

b.    Analyst Call

i.     Listen to a recording of an analyst call (AKA earnings call or quarterly conference call) for your company.  Listen to about 15-20 minutes of the call and summarize your observations, including any questions that you might have wanted to ask the CEO/CFO, etc.

II.              Industry and Strategy Analysis

a.    Industry Analyses

i.     Porter’s Five Forces

1.     Rivalry among existing firms

2.     Threat of new entrants

3.     Threat of substitutes

4.     Buyer power

5.     Supplier power

ii.     Value Chain Analysis

1.     Industry Value Chain

2.     Focus of your company

b.    Company Strategy Analysis

i.     Is your company following a Low Cost Leader or a Product/Service Differentiation Strategy?

ii.     How should this impact their financials?

 

III.            Accounting and Financial Analysis

a.    Recasted Income Statement (3 years)

b.    Recasted Balance Sheet (3 years)

c.    Common Size Income Statement (3 years)

d.    DuPont Analysis (1 year)

e.    Profitability Analysis Ratios (3 years)

i.     SG&A to Sales

ii.     Tax Expense to Sales

iii.     Accounts Receivable Turnover and Days

iv.     Inventory Turnover and Days

v.     Accounts Payable Turnover and Days

vi.     Profit Margin

vii.     Return on Assets (ROA)

viii.     Return on Equity (ROE)

ix.     Gross profit margin

x.     EBIT Margin

xi.     Dividend Payout Ratio

xii.     Sustainable Growth Rate

Interpreting Financial Results

Interpreting Financial Results

 

Resource:  Financial Statements for the company assigned You can use the financial statements for any company.  Many are available on the internet.

 

Review the company’s financial statements from the past three years.

 

Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company historical data as well as industry benchmarks:

 

  • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
  • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

 

Write a 600 to 750 word summary of your analysis.

 

Show financial calculations where appropriate.

 

Must be 0% plagarism

 

Resource:  Financial Statements for the company assigned You can use the financial statements for any company.  Many are available on the internet.

 

Review the company’s financial statements from the past three years.

 

Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company historical data as well as industry benchmarks:

 

  • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
  • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

 

Write a 600 to 750 word summary of your analysis.

 

Show financial calculations where appropriate.

 

Must be 0% plagarism

International Business Practices

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Despite some of the business challenges that you identified about your chosen country, you decided to move ahead and open an office in the financial center of this country. Your first customer is a large MNC that is looking to finance a plant in Latin America. They have asked for your assistance in advising them on this business endeavor.

 

 

  • Using information that you gathered from your Phase 4 IP and other course materials, discuss its options and the foreign exchange aspects that affect the financing for the MNC. Include the following:
    • Foreign currency risk
    • Why they need to hedge foreign exchange
    • What sort of foreign exchange instruments you would recommend
    • Whether they have to be aware of any government regulations that would affect earnings and cash flow
  • Include the need to be aware of inflation and interest rates and how it affects exchange rates.
    • Keep in mind that the country that the plant is in does not necessarily have to be where the financing is done.

Please add your file.

 

Market Neutral Strategy Involves Both Buying And Shorting Stock. Discuss

Question 1 (maximum of 200 words for the answer)

A market neutral strategy involves both buying and shorting stock.  In this strategy, the investor purchases shares of stock in companies she or he likes, but combines this investment with short positions in stock of other companies in the same industry.

 

Explain the difference between systematic and unsystematic risk.

Which type of risk is being reduced by the market neutral strategy?  What is the beta of a portfolio which follows this strategy likely to be?

Which type of risk is the investor still exposed to with a market neutral strategy?  Under what circumstances would the investor earn abnormal returns?

 

Question 2 (maximum of 200 words for the answer)

Comment on the validity of the following statement, including as much detail, examples etc. as you need:

 

“Buying a Call option on a stock is less risky than buying the stock itself, because your maximum loss is restricted to the premium paid for the option.”

 

Question 3 (maximum of 300 words for the answer)

After some research you identify a small, publicly traded company in the technology sector that you are interested in investing in.  Discuss the relative risks and rewards of the following ways of investing in the company (do not just describe the legal differences, focus on strengths and weaknesses as they relate to risk and return):

 

a)  buying shares of the company’s stock

b)  buying regular fixed coupon bonds issued by the company

c)  buying a Call option on the company’s stock

d)  buying convertible bonds issued by the company

 

Question 4

You decide to set up a straddle trade on a stock.  This is a trading strategy that involves buying both a Call option and a Put option on the same stock. The following summarizes the details of the trade at the time you execute it:

 

Stock Price = $29 per share

Call option:  strike price of $30 per share, premium of $2.31 per share

Put option:  strike price of $30 per share, premium of $3.11 per share

 

You implement the straddle trade at this point in time and then maintain the trade until the expiry of the options.  When the options expire the price of the stock is $28 per share.

 

What is your holding period return on the straddle trade (show all workings carefully)?

 

Question 5 (maximum of 150 words for the answer)

The following chart shows the cumulative abnormal returns (CARs) for firms announcing a Seasoned Equity Offering (SEO).

a) What form of the efficient market hypothesis is this testing?

b) Is the evidence present in favor of or contrary to market efficiency?  Explain why.

c)  What accounts for the shape of the graph prior to the announcement of the SEO (i.e. from t=-25 to t=0)?

Managing The Organization Structure

Managing the Organization’s Structure

Background

After finishing with the background page and readings, go to the following interview with Rosabeth Moss Kanter, who is a renowned Professor of Business Administration at Harvard Business School, and an influential business advisor. Among other things, in this interview she talks about the evolution of changes in organizational structure in the past decades, and the link to employees’ well-being and functioning.

Required Reading

Both of the following articles can be found in the EBSCO Business Source Complete database.

Puffer, S. (2004) Changing organizational structures: An interview with Rosabeth Moss Kanter. Academy of Management Executive, 18(2).

The following article looks at changing organizational structures as open systems and the effect on managers.

Buhler, P. M. (2011). Changing organizational structures and their impact on managers. Supervision, 72(2), 24-26.

Assignment

Write a 4- to 5-page critique answering the questions below.

  1. An organization’s structure can have significant effects on its members. What might those effects be? Analyze the behavioral implications of different organizational designs and use at least three examples, SAS being one of them.
  2. Is it possible to generalize and say that a certain structure is better than others? That is, is there a structure that is superior in terms of its effects on its members?

Keys to the Assignment

The key aspects of this assignment that should be covered in your paper are:

  • Define the problem: Explain the relationship between organizational structure and human behaviors.
  • Analyze the cause: Analyze how specific organizational designs can elicit predictable attitudes and motivations. Be sure to use SAS as one of your examples (refer back to Module 2).
  • Propose a solution: Take a position on Question 2 and defend it with references to the concepts in the readings in this module and any previous modules that you find relevant.
  • Extra credit will be given if you can relate your discussion to cultural differences (Module 1).

Assignment Expectations

Your paper will be evaluated using the following five (5) criteria:

  • Assignment-Driven Criteria (Precision and Breadth): Does the paper fully address all Keys to the Assignment? Are the concepts behind the Keys to the Assignment addressed accurately and precisely using sound logic? Does the paper meet minimum length requirements?
  • Critical Thinking (Critical Thinking and Depth): Does the paper demonstrate graduate-level analysis, in which information derived from multiple sources, expert opinions, and assumptions has been critically evaluated and synthesized in the formulation of a logical set of conclusions? Does the paper address the topic with sufficient depth of discussion and analysis?
  • Business Writing (Clarity and Organization): Is the paper well written (clear, developed logically, and well organized)? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are section headings included in all papers? Are paraphrasing and synthesis of concepts the primary means of responding to the Keys to the Assignment, or is justification/support instead conveyed through excessive use of direct quotations?
  • Effective Use of Information (Information Literacy and References): Does the paper demonstrate that the student has read, understood and can apply the background materials for the module?  If required, has the student demonstrated effective research, as evidenced by student’s use of relevant and quality (library?) sources? Do additional sources used in paper provide strong support fo

    Managing The Organization Structure

    r conclusions drawn, and do they help in shaping the overall paper?

  • Citing Sources: Does the student demonstrate understanding of APA Style of referencing, by inclusion of proper end references and in-text citations (for paraphrased text and direct quotations) as appropriate? Have all sources (e.g., references used from the Background page, the assignment readings, and outside research) been included, and are these properly cited? Have all end references been included within the body of the paper as in-text citations?

Tips and Suggestions

Please note the following tips and suggestions:

  • Include a cover page and reference page in addition to the 4–5 pages of analysis described above.
  • You are expected to demonstrate that you have read, understood, and can apply the required background readings for this module in your answer to this case. Be sure to read the required readings carefully, and use the theories and arguments you learn from them to support your analysis.
  • Include headings for all papers longer than two pages (basically all papers).
  • Cite and reference all sources that you use in your work, including those that you do not quote but paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and include citations for information that you have “borrowed” or paraphrased from other sources.
  • Follow TUI Guidelines for well-written papers. (If you are unsure of what those guidelines are, see The Elements of a Well Written Paper).

Submit your analysis by the end of this module.

Working Capital Simulation: Managing Growth

Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment

Ch. 1 – 21 ofFundamentals of Corporate Finance

WileyPLUS Assignments

All additional resources from each week

 

Review the following scenario:

 

Acting as the CEO of a small company, you will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory.

 

You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm’s financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity.

 

Sign-in to the simulation and review each of the following:

 

  • Welcome Statement
  • How to Play
  • Terminology Primer
  • More Details (this includes information to help you understand how to play the simulation)

 

Write a paper of no more than 1,400 words that analyzes your decisions during each phase (1-3) and how they influenced each of the following final outcomes (metrics) of SNC:

 

  • Sales
  • EBIT
  • Net Income
  • Free Cash Flow
  • Total Firm Value

 

Address the following in your paper:

 

  • A summary of your decisions and why you made them
  • How they affected SNC’s working capital
  • What general effects are associated with limited access to financing

 

Include scholarly references (in addition to your course textbook and simulation materials) to support your positions.

 

Format your paper consistent with APA guidelines

 

 

DO NOT RESPOND IF YOU ARE A FRAUD AND ARE GOING TO SUBMIT A PLAGIARIZED PAPER. HAS TO BE 100% ORIGINAL.  i HAD THREE PEOPLE SCREW ME OVER THIS WEEK BY SUBMITTING PLAGIARIZED PAPER ON THE SAME ASSIGNMENT.  ITS BEEN A HORRIBLE WEEK AND THIS IS THE LAST TIME I WILL USE HOMEWORK MARKET IF I GET SCREWED OVER AGAIN.  IT IS NOT THAT I CANNOT DO MY ASSIGNMENT, BUT I HAVE A BUSY SCHEDULE.

A primary source of stockholders’ equity is

1) Proceeds from an issue of debt securities having stock warrants should NOT be allocated between debt and equity features when

A. the allocation would result in a discount on the debt security.

B. the warrants issued with the debt securities are nondetachable.

C. exercise of the warrants within the next few fiscal periods seems remote.

D. the market value of the warrants is NOT readily available.

2) The conversion of preferred stock may be recorded by the

A. market value method.

B. par value method.

C. book value method.

D. incremental method.

3) The conversion of preferred stock into common stock requires that any excess of the par value of the common shares issued over the carrying amount of the preferred being converted should be

A. treated as a prior period adjustment.

B. treated as a direct reduction of retained earnings.

C. reflected currently in income as an extraordinary item.

D. reflected currently in income, but NOT as an extraordinary item.

4) A primary source of stockholders’ equity is

A. contributions by stockholders.

B. both income retained by the corporation and contributions by stockholders.

C. appropriated retained earnings.

D. income retained by the corporation.

5) Stockholders’ equity is generally classified into two major categories:

A. retained earnings and unappropriated capital.

B. earned capital and contributed capital.

C. appropriated capital and retained earnings.

D. contributed capital and appropriated capital.

6) When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction is the

A. market value of the shares issued.

B. Any of these provides an appropriate basis for recording the transaction.

C. par value of the shares issued.

D. market value of the services received.

7) Treasury shares are

A. shares held as an investment by the treasurer of the corporation.

B. issued but NOT outstanding shares.

C. shares held as an investment of the corporation.

D. issued and outstanding shares.

8) “Gains” on sales of treasury stock (using the cost method) should be credited to

A. paid-in capital from treasury stock.

B. other income.

C. capital stock.

D. retained earnings.

9) How should a “gain” from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?

A. As ordinary earnings shown on the income statement.

B. As an extraordinary item shown on the income statement.

C. As paid-in capital from treasury stock transactions.

D. As an increase in the amount shown for common stock.

10) In computing earnings per share, the equivalent number of shares of convertible preferred stock are added as an adjustment to the denominator (number of shares outstanding). If the preferred stock is cumulative, which amount should then be added as an adjustment to the numerator (net earnings)?

A. Annual preferred dividend

B. Annual preferred dividend divided by the income tax rate

C. Annual preferred dividend times (one minus the income tax rate)

D. Annual preferred dividend times the income tax rate

11) When computing diluted earnings per share, convertible bonds are

A. ignored.

B. assumed converted only if they are dilutive.

C. assumed converted whether they are dilutive or antidilutive.

D. assumed converted only if they are antidilutive.

12) What effect will the acquisition of treasury stock have on stockholders’ equity and earnings per share, respectively?

A. Decrease and no effect

B. Increase and decrease

C. Increase and no effect

D. Decrease and increase

13) On May 1, 2007, Kent Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Kent had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Kent ‘s common stock was $20 per share on May 1, 2007. As a result of this stock dividend, Kent’s total stockholders’ equity

A. did NOT change.

B. increased by $200,000.

C. decreased by $10,000.

D. decreased by $200,000.

14) How would the declaration and subsequent issuance of a 10% stock dividend by the issuer affect each of the following when the market value of the shares exceeds the par value of the stock? Additional Common Stock | Paid-in Capital

Analyze the central manner in which the strategies of each company’s business leaders have adapted to cultural differences

Bus599 Week 10 Assignment 4 Capstone Project on Apple Inc and Samsung Group

Use the Internet to research articles on strategic management of Apple Inc. and Samsung Group.

Write a ten to twelve (10-12) pages paper in which you:

1. Analyze the existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple andSamsung. Assess the significant manner in which each company’s mission and vision align with the long-terms goals and strategic direction of the organization.

 

2. Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the industry. Provide rationale to support the response.

 

3. Analyze the central manner in which the strategies of each company’s business leaders have adapted to cultural differences in order to both facilitate effective operations within global markets and drive new strategic initiatives with improved innovation excellence. Provide one (1) example of such strategies in use from each company to support the response.

 

4. Evaluate the superiority of each company’s organizational competencies in terms of entrepreneurial capabilities, organizational design capabilities, and strategic capabilities geared toward increased performance and profitability. Include one (1) example of such superiority from each company to support the response.

 

5. Recommend one (1) appropriate new business strategy for each company that may maximize profitability and improved competitiveness in the industry. Provide a detailed rationale for this strategy.

 

6. Evaluate the success of both companies’ corporate-level strategies in terms of horizontal integration, vertical integration, strategic outsourcing, or diversification. Next, determine the type of strategy that contributed most effectively to the creation of a successful and profitable multi-business model. Provide a detailed rationale to support the response.

 

7. Analyze the strategies that the internal leadership of both Apple and Samsung has taken to discourage unethical behaviors. Provide at least three (3) examples of such leadership in action from both companies to support the response.

 

8. Assume that both Apple and Samsung are in need of organizational change and must alter existing strategies. Recommend three (3) specific ways in which Apple and Samsung could change functional, business, and corporate strategies, as well as organizational structure and control in order to improve business performance and competitiveness in their industry. Provide a rationale to support the response.

 

9. Use at least five (5) quality academic resources in this assignment.

 

Note: Wikipedia and other Websites do not qualify as academic resources.

 

Your assignment must follow these formatting requirements:

 

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

 

 

Discuss the Strategic Management concepts

In this week’s Critical Thinking assignment you will construct an evaluation framework that may be appropriate for Walgreens. Develop a deeper understanding of review, evaluation, and control by identifying four academic studies from scholarly journals that are relevant to the topic. The four studies should have been conducted within about the last three years.

 

For this assignment, the PowerPoint software program (or a similar program) will be used. Please review attached Figure 9.2 as a basis and example, construct a strategy-evaluation framework that may be useful to your target organization. In other words, customize and create a framework that contains elements necessary for review, evaluation, and control.

 

 

Then, in the notes section of the PowerPoint slide, provide an explanation of why this framework was a good choice to meet the demands of 21st century issues and unique aspects that are related to your target organization.

 

APA guidelines for PowerPoint are needed. Include a title slide and reference slide. Thus a total of three slides will be submitted for this Critical Thinking assignment.

Business Plan Practice

Resources: All previous parts of the Business Plan Practice, Appendix 2—Sample Student Business Plan—and Appendix 3—Advanced Business Plan—in Entrepreneurship: Starting and Operating a Small Business

Combine all previous parts of the Business Plan Practice and submit it as your Final Business Plan project.

Locate Appendix 2 and Appendix 3 of Entrepreneurship: Starting and Operating a Small Business:

  • Access the text within the eBook collection through the link provided
  • Click theDownload eBooklink
  • Click theEntrepreneurship_Entire_eBook.pdflink
  • Click Open or Save when prompted
  • Use the Adobe down-arrow or scrollbar to navigate to Appendix 2 and Appendix 3

Refer to Appendix 2 as a sample and Appendix 3 as a format guide. The business should reflect the merits of a plan that represents a business venture in a real business environment. As you prepare your business plan, ask these questions:

  • Does this business plan do justice to my dreams and goals of owning a business?
  • If I saw this business plan presented by someone else, would I be interested and eager to participate and invest in the project?

Prepare a PowerPoint© presentation of 13 to 25 slides that you would use to gain support for your business venture.

Refer to Ch. 11 of Preparing Effective Business Plans for guidelines. Speaker’s notes are optional, but the presentation must reflect your business plan explicitly.

Resources: All previous parts of the Business Plan Practice, Appendix 2—Sample Student Business Plan—and Appendix 3—Advanced Business Plan—in Entrepreneurship: Starting and Operating a Small Business

Combine all previous parts of the Business Plan Practice and submit it as your Final Business Plan project.

Locate Appendix 2 and Appendix 3 of Entrepreneurship: Starting and Operating a Small Business:

  • Access the text within the eBook collection through the link provided
  • Click theDownload eBooklink
  • Click theEntrepreneurship_Entire_eBook.pdflink
  • Click Open or Save when prompted
  • Use the Adobe down-arrow or scrollbar to navigate to Appendix 2 and Appendix 3

Refer to Appendix 2 as a sample and Appendix 3 as a format guide. The business should reflect the merits of a plan that represents a business venture in a real business environment. As you prepare your business plan, ask these questions:

  • Does this business plan do justice to my dreams and goals of owning a business?
  • If I saw this business plan presented by someone else, would I be interested and eager to participate and invest in the project?

Prepare a PowerPoint© presentation of 13 to 25 slides that you would use to gain support for your business venture.

Refer to Ch. 11 of Preparing Effective Business Plans for guidelines. Speaker’s notes are optional, but the presentation must reflect your business plan explicitly.