Context:
So far, we have reviewed the 10K statements for Costco, Target, and Walmart on SEC Edgar, using that information to populate the Comprehensive Case Template which has been posted on Blackboard. The template provided an overview of the Balance Sheet and Income Statement from the last two years for each company.
Additionally, we have written cases analyzing their profitability, credit risk, earnings per share, asset management, and related metrics.
Finally, we have prepared a forecast of the financial statements using the information obtained on Bloomberg and the financial analysis we have previously conducted.
Assignment:
Using the information from the Comprehensive Case Template, first Written Case, Financial Forecast, as well as your understanding of the principles covered in the text and lecture relating to valuation and forecasting, prepare a 1 page (maximum) written case for each of the following modules which answers these questions about your opinions on Costco Wholesale:
PART 4a
PART 4b
Modules | Assignment |
12 | Use the Dividend Discount Model to estimate the value of a share of company stock. How does it compare to the price in the market? What do you believe to be the reasons for the difference? Whatinvestmentdecisionissuggestedfromyourresults? |
Modules | Assignment |
13 | Using the Discounted Cash Flow Model, estimate the value of a share of company stock. How does it compare to the closing price of the stock on the stock exchange? What do you believe to be the reasons for the difference? Whatinvestmentdecisionissuggestedfromyourresults? |
FIN312/ACTG312 COMPREHENSIVE CASE
PART 4c
PART 4d
Modules | Assignment |
14 | Using the ROPI Model, estimate the value of a share of company stock. How does it compare to the closing price of the stock on the stock exchange? What do you believe to be the reasons for the difference? Whatinvestmentdecisionissuggestedfromyourresults? |
Modules | Assignment |
15 | Using Market Multiples, estimate the value of a share of company stock using the NOA Multiple, BV Multiple, NOPAT Multiple, NI Multiple How do these figures compare to each other? How does it compare to the closing price of the stock on the stock exchange? What do you believe to be the reasons for the difference? Whatinvestmentdecisionissuggestedfromyourresults? |
As the template sets up most of the analysis, the focus of your written case should be the answers to the questions for each. Outlined below is a rubric indicating how the written cases will be graded.
Basic = 1 Point, Developed = 2 Points, Mastery = 3 Points. Points will be summed up and divided out of points possible to arrive at the grade.
Due Dates:
Each 1 page paper is due at the same time we review the Homework for that Module in class (ie.usually the next class following the lecture on that module). Refer to the syllabus for details on due dates
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