Instructions For Next Class

Financial Analysis Applications – MS5242
Instructions for next class – 24/02/2023
Groups and Tasks

Case studies are allotted to the groups.
Groups of 7 members, each with minimum of one person with a finance background
Each group is to present its analysis of the company and interpretation in 5 – 6 ppt
slides
Group Number and names of the group members – in the first slide
Financial analysis as desired from the case study
Analysis and findings, including any outstanding/ innovative interpretation
Each group will be given 6 minutes for the presentation
File names to have group number and date of presentation
Presentations received after the cut-off will not be entertained and no marks will be
given to the group and will be considered “not submitted”
Submit it in Moodle – before 23/02/2023 (11:59 pm)
The presentation should include –

1 Introduction and background slide
2. Question for the group
3. Data given, methodology, and analysis
4. Conclusion for the questions with answers based on the analysis
P.T.O.
Case Allocation and Questions
Case
Group
Study Questions
1. From the beginning of 2000 until its peak in 2012, Apple’s stock price rose
from $27.97 to $702.10, an increase of over 25 times. What specific attributes of
their operational performance account for this stock performance?
1 Apple 2. Apple’s stock price decreased by 37% from its peak in Sept 2012 until the
end of March 2013, from $702.10 to 442.66. Again, what specific attributes of their
operational performance account for this stock performance?
1. Why does Apple hold so much cash? How much “excess” cash do they have?
How much cash would they have after five years if they distributed all of their
“excess” cash to shareholders in 2012? Use Exhibit 10 to forecast Apple’s financial
2 Apple
status over the next five years.
2. If Apple chose instead to commit to an annual dividend from 2012-2017,
how much do you think they could afford to distribute each year?
1. Quantitatively compare the results of a share repurchase, dividend, and ipref
issuance. Assume that Apple will use all excess cash for share repurchases,
3 Apple dividends and, in the case of ipref, will issue 5 per share. For ipref analysis, assume
a constant P/E ratio of 10.0x as Einhorn did. How does this assumption impact
analysis?
1. Consider the strategy used by Century 23 Global Fund. What key criteria
4 Disney
should Crowley apply when making her investment decisions?
1. Size up the economy, as well as the media and entertainment industry. What
are the growth prospects, competitive position, and key success factors?
5 Disney
2. How do you evaluate Disney’s Financial performance, both on an absolute
basis and relative to its peers?
1. How would you access Disney’s prospects compared with the consensus
analysts’ forecasted revenue and profits? How would you assess the future
performance of its peers?
6 Disney
2. In the place of Crowley in December 2019, what action, if any, would you
take with respect to the Century 23 Global Fund’s position regarding Disney’s
stock? Defend your position.
Home
7 1. Evaluate The Home Depot’s growth Strategy
Depot
1. How well did the company implement its strategy? Analyze The Home
Depot’s financial performance and cash flow during the fiscal year 1985. How well
Home did the company perform in 1985 relative to the previous years? How does The
8
Depot home depot’s performance compare to that of Hechinger? You may use the
analysis in Exhibit 3 in the case as a guide to begin your analysis. Also, make sure
that you use data on store productivity in your analysis.
1. Recommend a plan of action to The Home Depot’s management based on your
Home analysis of the company’s current performance and future growth plans. Your
9
Depot recommendations should deal with the company’s operating performance, growth
strategy, and external financing needs.
1. How would you describe Ford’s comparative performance and financial
10 Ford position? Examine Ford’s financial ratios. What does each ratio tell you about
Ford’s Financial status?
2. As a current investor in Ford, what is your overall assessment of Ford? And
11 Ford
which elements of financial performance are most important?
3. As john Smith in January 2018, would you buy more Ford stock, continue to
12 Ford hold current Ford stock, or sell the Ford stock? If you decide to sell, in which other
manufacturers would you invest?

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Financial Analysis Applications – MS5242

Instructions for next class – 24/02/2023

Groups and Tasks

Submit it in Moodle – before 23/02/2023 (11:59 pm)

The presentation should include –

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