Project Report on Corporate Finance

This four-credit course is for students who major in finance. By the end of this course,

Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:

For this course project, I have chosen Cisco Systems, Inc. and tried to do the DuPont analysis for this company. Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. Cisco also provides broad line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Various products offered by Cisco are switching, NGN routing, collaboration portfolio integrating voice, video, data and mobile applications data center and other networking products. Cisco Systems has a market cap of $128.77 billion and is part of the technology sector and

The company has not only paid dividends to investors but repurchased common stock. It is likely that the management views that the shares are undervalued given the company are being a market leader in the low-cost carrier. The airline industry is consolidating with airlines also increasing their dividends while also announcing plans for buybacks with a view of increasing the value of shares (AP, 2014). The company still has various strengths given its record of earnings as well as growth in earnings per share. Even with low profit margins, the company’s dividend will likely increase, given the consistent return on equity over the

Isolation Company has a debt–equity ratio of 0.80. Return on assets is 8.0 percent, and total equity is

Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary.

The four options for dividend disbursement that FPL has are to first to keep the dividends at the status quo of 1.6%, second to slower the dividend growth to 1%, third to freeze dividend, and last to reduce or eliminate the dividend completely. When analyzing the first option, which is the keep the dividends at an increasing 1.6% per year, exhibit TN-4 shows that dividend payouts do increase from $468.38 million in 1994 to $499.08 million in 1998 with a resulting negative net cash after dividends every year till 1997 when cash is $110 million and 1998 when cash is $102 million. The payout ratio however does reduce to 84% by 1998.

Before recommending investments, it is necessary to better understand the investor’s goals, life stages and risk tolerance. Whether it be a small or large investment, there are several stages to deciding upon the best investment(EdwardJones, n.d.):

dropped stead by 10% for the past two days, which is known as erosion or

They carry a larger proportion of current assets relative to their operating revenue than their competitor.

The main purpose of the report is to make a decision for Linear Technology on dividend policy. The report analyzed the impact of changing future dividend policy on the value of the company, based on its historical performance, financial history and market trends.

Description: the data shows that, company is paying a dividend in the last three years and for 2010 dividend is 4.3 per share.

Based on the financing needs, as above dividends would be additional stretch on company finances

The advantages to a LLC are: 1) Reduction of personal liability. A sole proprietor has unlimited liability, which can include the potential loss of all personal assets. 2) Taxes. Forming an LLC may mean that more expenses can be considered business expenses and be deducted from the company’s income. 3) Improved credibility. The business may have increased credibility in the business world compared to a sole proprietorship. 4) Ability to attract investment. Corporations, even LLCs, can raise capital through the sale of equity. 5) Continuous life. Sole proprietorships have a limited life,

1. An international bank loaned money to an emerging country a few years ago. Because of the nonpayment of interest due on this loan, the bank is now negotiating with the borrower to exchange the loan for Brady bonds. The Brady bonds that would be issued would be either par bonds or discount bonds with the same time to maturity.