Westfarmenr

* Our company’s sales forecast has been based on performance from previous years along with market circumstances. We are looking at the future of the business objectively which we then can evaluate past to

When forecasting Polymold Division’s financial statements there are some assumptions that need to be taken into account before projecting the numbers. One of the assumptions is

This is the assessment of the historical and future performances of the two companies in order to fully project internal and external factors that will affect the forecasts. The purpose is to identify trends, year to year changes, in order to assess whether the two companies’ performance are stable or sporadic and highly volatile.

The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.

This report is prepared for Tanya Turner who is considering purchasing shares of $30,000 in Pumpkin Patch Limited (PPL). The aim of this report is to provide Tanya with an analysis of Pumpkin Patch’s annual report and the viability of investment stocks in PPL in the medium to long term to make a valid recommendation for Tanya for her potential $30,000 investment. With no accounting knowledge Tanya is keen to build up a share portfolio that will provide long term benefits. Pumpkin Patch is a clothing retail store that specializes in selling infant, toddler, children and maternity clothing as well as accessories. Stores are mainly based in New Zealand, Australia and Ireland with Australia being the biggest market. Pumpkin Patch hasn’t had a very positive 2014 financial year and recommend that Tanya does not invest $30,000 in PPL.

It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business

After considering the operational improvements forecasted, we project Robertson’s free cash flows and compute the terminal value using the Gordon Growth Method; the implied share price is analyzed further in accordance to growth rate and discount rate.

As of February 2010, what is your assessment of the worth of Walmarts stock? Utilize all of the methods discussed in the case to value the shares, including the following: • The perpetual growth in dividends • Forecasted dividends for the next several years plus sale of the stock in the future • The three-stage dividend model • The price/earnings approach

• Pe = D1/(re – g) = 700 / (0.11 – 0.05) = $11,667 • price per share = $11,667 / 1,000 = $11.67 3. Same facts as (2) above, except the 5% income growth rate (and beginning of year common equity to support it) are only expected for years 2 and 3. Then growth is expected to be zero and all income is expected to be distributed to shareholders for all future years. a. Compute D1, D2, D3, and Dt for all future years. • Keeping in mind that income is $1,100 in year 1, increases by 5% in years 2 and 3, and then remains constant for all future years; and keeping in mind that beginning of year 1 common equity is $8,000, increases by 5% at the beginning of year 2 and at the beginning of year 3, but does not increase at the beginning of year 4 and remains constant from that point forward, you should be able to compute: D1 = $700, D2 = $735, and Dt = 1,212.75 for D3 and all future years. b. Use the dividend discount (i.e., free cash flow to equity investors) valuation model to estimate the company’s current stock price. Pe = 700/(1+ 0.11) + 735/(1+ 0.11)2 + [1,212.75/0.11]/(1+ 0.11)2 = $10,175.31 and the price per share of common stock = $10,175.31 / 1,000 = $10.18. 4. Same facts as (3) above, except the growth rates are 5% for years 2 and 3 and then 3% perpetually for all future years. a. Compute D1, D2, D3 and the growth in D for all future years. • Keeping in mind that income is $1,100 in year 1, increases by 5% in years 2

Profitability ratios are basically figures to measure if the company is doing well in the terms of profit[13]. ROCE ratio has increased in 2011 but in 2012 it deteriorates by 3%. This fall indicates that company was not successfully getting high returns as a percentage of its resources available, compared to 2011.

To facilitate the valuation aspect of the analysis, free-cash-flow forecasts are provided in case Exhibit 10 for Hershey as a stand-alone entity. Most students should find it easy to calculate a value for Hershey using the discounted-cash-flow (DCF) method and industry-comparable multiples, which also are provided. As with any valuation case, students must make judgments about the appropriate capital structure, the weighted average cost of capital (WACC), sales growth, and the terminal growth rate. Once students have explored the value drivers for Hershey though sensitivity analysis, they may then evaluate the bids from both Nestlé S.A.–Cadbury Schweppes PLC (NCS) and the Wm. Wrigley Jr. Company. They will want to examine whether the bids are fair from the perspective of HFC shareholders and whether the synergies assumed by the bidders in their offer prices are reasonable.

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

It is determined that the company worth is $856,518 with a share price of $351.03 per value as per the discounting dividend cash flow valuation approach..In appraising the anticipated premerger performance of the company, the weighted average cost of capital is computed; the worth of the WACC for FVC is 9.2% as depicted in

Whittaker’s is most trusted brand of chocolate in New Zealand. Whittaker’s headquarters are located at Porirua, Wellington, New Zealand. Whittaker’s was founded by J.H Whittaker in Christchurch. James Henry Whittaker worked in the British confectionery industry at the age of 14 and moved to Christchurch, New Zealand, in 1890. Six years later he started manufacturing chocolate confectionery, selling it directly to customers.  In 1913, he established a partnership with his two sons, Ronald and James, based in Wellington. The business became a limited liability company in 1937, with third-generation Whittaker’s still the sole shareholders in the company. In 1992 the company formed J.H. Whittaker Australia Ltd.

Penman (2007) had stated that historical cost may provide useful margins on turnover for forecasting operating cash flows in a going concern business. On the other hand, when valuing a portfolio of marketable investments with fair value, it tends to be more reliable. Stakeholder of Woolworths includes investors, creditors, lenders and so forth, their needs of accounting information are different. Some of the investors are interested in the information using fair value approach for them to decide whether to buy or sell their shares, some of the lenders and creditors are interested in the current value of assets and liabilities of the entity to decide the ability of the entity to pay off a debt when due. Further, a particular stakeholder need more than one measurement approach to satisfy their needs of accounting information (e.g. considering to engage with Woolworths). Therefore, mixed measurement approach would be more appropriate to satisfy each stakeholder needs of accounting information (Rankin et al., 2012; Dvorakova, D., 2011).