Monmouth Case Study

• Without a detailed examination of the financial reporting practices and related disclosures of each company, it is difficult to draw conclusions about the degree to which the P/E ratio differences might be related to differences in earnings quality. Concerns about earnings quality have occasionally surfaced in financial press articles on each company.

Q1) Assess the product-market strategy and financial strategy Massey pursued through 1976. Where possible, compare Massey’s strategy with those of its leading competitors.

3. What is your evaluation of Iridium 's organizational design? What changes could you have made to increase the probability of Iridium 's success?

6.4. The multiples give a valuation range of $91.85 to $148.23. The EPS and Sales multiples are close to the industry average giving a range value very close to the offer price - $91.85-$95.09. The EPS and Book value are very much affected by the leverage structure and thus may be not a true representation.

Valuation Estimates: Actual Price (6/1/07): $21.63 Trailing P/E $9.57 Forward P/E $7.80 PEG $2.92 P/B $54.00 P/EBITDA $28.24 P/FCF $123.39 EV/EBITDA $3.54 Intrinsic Valuations Discounted Dividend Free Cash Residual Income LR ROE AEG Actual $18.40 $29.71 $3.22 $7.21 $8.79

While it is notable that both companies have strong 2005 ROE 's and have increased their

1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?

The purpose of this company analysis is to discover why one company would be better to invest in over the other. The analysis is based on two competing companies within the same industry. While these two companies compare in products and services, they do not relate in overall size. To assist in making an educating decision, many areas of each company were looked at. A comprehensive financial ratio analysis was completed for each company, as well as an evaluation of their strengths, weaknesses and future opportunities. While it is important to consider how a company manages its finances, it is equally important to consider its future prospects as well. Below you will find a brief description of each company, and an

This manager’s report provides a financial performance review of the business operations for athletic footwear industry’s Elite Feet for production Years 11 through 18. Included in the report are trends in company’s annual total revenues, earnings per share (EPS), return on equity (ROE), credit rating, stock price and image rating. Additionally reported are the strategic vision for the company, performance targets for the aforementioned production years plus the next two years, the company’s competitive strategy as well as production strategy, finance strategy and dividend policy. Also discussed is a look at the company’s closest competitors and the actions that could be

Additionally, and by conducting a ratio analysis of each company, I came to notice the following:

Unlike many of our competitors, we obtain an extraordinary collection of name brand equipment. Caterpillar Inc., John Deere, and Mitsubishi are only a few of the brands we sell.

While analyzing AT& T a few differences are noted. As with Verizon, the current ratio did improve with an increase of five percent from 58% in 2005 to 63% in 2006. However, even though debt to equity decreased for both companies AT & T's decrease was only 4% compared to Verizon's significant decrease of 23%. The net profit margin ratio did opposite changes between the two companies while Verizon's increase not even one full percent AT &T's decreased by almost 3%. Even with these significant changes AT & T's price to earnings, as of 2006, was at 20.89 (www.hoovers.com). These variances tell us a couple of things. First, that AT& T has taken on more debt in 2006 versus 2005, but along with that debt they have been able to increase their net profit margin, helping the company in the way of earnings. The strong price to earnings ratio of 20.89 also shows that the shareholders are not faring too poorly either.

b. What is Q’s stock worth per share? How does that value depend on the payout ratio and growth rate after year 4?

The current financial performance is pretty optimistic for RL Corporation. At the same time, we also need to forecast the future financial data after 2012. To forecast the future free cash flow, only the internal employees can get the real and accurate information and ratios. As an external observer, we usually analyze the linear relation between the cost of capital and growth rate, considered as the constant growth model. First of all, we need find the WACC, Weighted Average Cost of Capital. The weighted average of the after-tax

Yes. Robertson Tool Company had been going through a few years of low sales and profit, and, coupled with conservative financial and accounting practices, was far behind the normal growth rate for companies in its industry. Robertson’s 50% control of the market for clamps and vises, along with its good position in the scissors and shears’ $200 million market, let it compliment the diverse holdings of Monmouth. These are attractive attributes of Robertson, but the selling point lies in the distribution network consisting of 2,100 wholesalers and 15,000 retail outlets. The Robertson products are sold in 137 countries worldwide.