Multinational Corporations (MNC) are defined as firms that engage in some form of international business. Their managers conduct international financial management which involves internatio
This is website:
https://www.dupont.ca/
But the Theam is :Company to run Rossy monitor DuPont Stock
And also we need financial report for two years and i am attaching the refenece docunents and requerements.
Please record the values as per the financial report in the assignment. We need two documents one is assignment and other one is financial report. Thanks
Requirements for the Reports
Multinational Corporations (MNC) are defined as firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. The goal of these managers is to maximize their firm’s value. The MNC objectives are to identify new markets to increase market share, invest excess cash, and ensure the soundness of any host country's financial market. As the CFO you are asked to analyze the strengths and risk of a potential new market and prepare a report to present to the Board. You will be given 8 questions to answer, and each question will represent a heading in your documents.
PART 1: Answer the first four questions. Each group member should respond to one question and put their name next to the response they provided. One person in the group will put all answers together following APA format (including references), using each question as a heading, and submit only one file. Remember that only ONE file should be submitted for the group.
PART 1 REPORT – Answer the following questions:
Question 1: Overview of the Corporation.
a. Provide an overview of the corporation to include but not limited to, when and how it was incorporated, by who, the board of directors, specific interest of the corporation, its headquarters, size, regions of operation and strength in the market.
b. The MNC wants to expand in new markets. Choose a foreign country (host country) and explain your reasons for choosing the host country. State clear reasons for your choice of host country. Do a profile of the country, to include its strengths and weaknesses
c. There are different ways to enter a foreign market. Discuss the different options and explain how you will enter the foreign market. (example, franchise, acquisition). Choose a location in the foreign country (city). Explain why you chose the city
d. Identify the gap in the market. Explain the potential for growth, is there some evidence that consumers in the foreign country will purchase your product?
e. Discuss the competitive advantage of the corporation.
Question 2: MNC Financing. The MNC will need financing to purchase the product or raw material new supplier.
a. Discuss the amount of financing needed.
b. Explain how you arrived at the amount and how it will be spent.
c. Explain the different options available for financing.
d. From your discussions from “c” choose the best option for your corporation and explain its advantages for the corporation
e. Will you seek financing in the domestic or foreign country, why, how, and where? Include the impact of interest rates and foreign exchange rate in your answer.
Question 3: Entering a new market comes with risk.
a. What are the financial risks of the host country?
b. What are the political and economic risks of the host country?
c. Discuss the types of foreign exchange exposures
d. Which of the foreign exchange exposures will impact the MNC? Explain why?
e. Research and study historical foreign exchange rates between home country and the host country for a minimum of 12-36 months. Analyze the trend. Home currency is the currency of your home country where your business is established, and the host country’s currency is the foreign currency. Please note that you must express the currency in terms of home currency per 1 unit of foreign currency. (For example, if Canada is your home country and US is the foreign country, the currency rate is expressed as 1 USD= 1.2685 CAD) ( https://www.oanda.com/fx-for-business/historical-rates), https://www.xe.com/currencycharts/ Explain how the home currency has changed over the period and how will it impact the MNC’s business.
Question 4. The CFO has noticed a constant increase in the stock market and sees this as a good opportunity to purchase a stock (your professor has assigned a stock you should monitor)
(a) Examine the corporation’s financials for the last two years and discuss the performance of the company. Include the following in your answer: sales revenue, profits, earning per share, debt ratios, liquidity ratios and gross margins.
(b) Discuss the reasons for changes in the stock price for the last 12 months. Finance.yahoo.com www.msn.com . Yahoo Finance, Google Finance, MarketWatch, Morningstar, Seeking Alpha, Financial Post, CNBC.com and Bloombergcan assist you to find the most current news about your corporation.
(c) Use the Gordon Growth Model to calculate the true value of the stock. Comment on the results.
(d) Make your recommendations to the Board, should the MNC purchase the stock you are asked to monitor, yes/no and explain your reasons include financial analysis.
(e) Apart from the stock you are asked to monitor, choose another stock that you would recommend to the CFO to purchased and explain the reason for your choice.
Your project submission will be graded according to the criteria below.
|
1-9.99 |
10-11.99 |
12-13.99 |
14-15.99 |
16-20 |
Score |
|
|
17.0% Content Questions |
One or more of the content questions are not addressed. |
All the content questions are addressed. No supporting detail is provided, and the paper lacks self-reflection. |
All the content questions are addressed. A cursory amount of supporting detail is provided. The self-reflection is trite and lacks insight. |
All the content questions are addressed. Adequate supporting detail is provided, though the self-reflection remains vague and generalized. |
All the content questions are addressed. Rich supporting detail and insightful self-reflection are provided. |
|
|
1.0% Thesis Development and Purpose |
Paper lacks any discernible overall purpose or organizing claim. |
Thesis and/or main claim are insufficiently developed and/or vague; purpose is not clear. |
Thesis and/or main claim are apparent and appropriate to purpose. |
Thesis and/or main claim are clear and forecast the development of the paper. It is descriptive and reflective of the arguments and appropriate to the purpose. |
Thesis and/or main claim are comprehensive. The essence of the paper is contained within the thesis. Thesis statement makes the purpose of the paper clear. |
|
|
1.0% Argument Logic and Construction |
Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses non-credible sources. |
Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility |
Argument is orderly but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis. |
Argument shows logical progressions. Techniques of argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative. |
Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative |
|
|
1.0% Mechanics of Writing (includes spelling, punctuation, grammar, language use) |
Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice and/or sentence construction are used. |
Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, and/or word choice are present. |
Some mechanical errors or typos are present but are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used. |
Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used. |
Writer is clearly in command of standard, written, academic English. |
|
|
Total Weight 20% |
PART 2 is assignment #5. It is a group effort, and you will be graded accordingly. Please complete the team contract and peer review form. Members that do not/or contributes less will be graded different. Questions will be sent to you weekly starting week 8.
,
Sample of a Comparable Balance Sheet
Spence Resources Inc.
Balance Sheet
December 31
2020 2019 2018
Assets
Current assets
Cash …………………………………………….. $ 72,520 $ 98,434 $ 103,040
Accounts receivable, net ……………….. 261,520 176,316 137,760
Inventory ………………………………………. 312,200 231,000 148,400
Prepaid expenses ………………………….. 27,160 26,520 11,200
Total current assets ………………………. 673,400 532,270 400,400
Plant assets, net ………………………………. 777,000 714,000 642,600
Total assets ………………………………………. $1,450,400 $1,246,270 $1,043,000
Liabilities
Accounts payable …………………………….. $ 360,920 $ 210,700 $ 137,900
Long-term notes payable ………………….. 273,000 287,000 231,000
Total liabilities …………………………………. 633,920 $ 497,700 $ 368,900
Equity
Common shares
45,500 shares issued and outstanding
455,000
455,000
455,000
Retained earnings ……………………………. 361,480 293,570 219,100
Total equity ……………………………………… 816,480 748,570 674,100
Total liabilities and equity …………………… $1,450,400 $1,246,270 $1,043,000
2020
2019
Favourable or
Unfavourable
a. Return on common shareholders’ equity1 …. 12.2% 12.4% Unfavourable
b. Price-earnings2 ……………………………………….. 14.35 14.43 Unfavourable
c. Dividend yield3 ………………………………………… 2.0% 1.07% Favourable
Calculations:
1. Return on common shareholders’ equity:
2020: $95,210* × 100 = 12.2%
($816,480 + $748,570)/2
2019: $88,120** × 100 = 12.4%
($748,570 + $674,100)/2
*calculated as follows: 361,480 – 293,570 = 67,910 change in retained earnings from
2019 to 2020 plus dividends declared (45,500 X 0.60 = 27,300) equals profit of $95,210.
** calculated as follows: 293,570 – 219,100 = 74,470 change in retained earnings from
2018 to 2019 plus dividends declared (45,500 X 0.30 = 13,650) equals profit of $88,120.
2. Price earnings ratio, December 31:
2020: $30/$2.09* = 14.35
2019: $28/$1.94** = 14.43
*$95,210/45,500 shares = $2.09 EPS
**$88,120/45,500 shares = $1.94 EPS
3. Dividend yield:
2020: ($.60/$30) x 100 = 2.0%
2019: ($.30/$28) x 100 = 1.07%
Yemp Yoga Western Sports
Current ratio 4.09 4.75
Debt ratio 20.36% 18.06%
Gross profit ratio 67.24% 54.74%
– Western Sport Clothing has a superior current ratio indicating that it is better able
to meet its short-term obligations than Hemp Yoga Clothing.
–
– Hemp has a lower Current ratio, so not as good as Western, but certainly over the
rule of thumb. The Inventory turnover for Hemp is better. This may contribute to
the lower current ratio as they have less inventory in the numerator on the
Current ratio. We don’t know the A/R turnover, but that could be a ratio that
management wants to look at as an indicator if they were collecting the Accounts
Receivable faster. Both would result in lower current ratio as they are selling
inventory faster and collecting accounts receivable faster. –
– Western Sport Clothing has a stronger balance sheet because it has a lower debt ratio; a lower debt ratio means Western Sport Clothing is exposed to lower risk associated with debt—that of having sufficient resources available to make interest and principal payments.
– Hemp Yoga Clothing’s gross profit ratio indicates that it generated $0.67 of gross profit for each $1.00 of sales which is more favourable Western Sport Clothing’s which showed that it generated $0.55 of gross profit for each $1.00 of sales. A healthy gross profit is necessary to cover selling and administrative expenses along with other expenses such as interest and income tax.
–
DRINKWATER INC.
Income Statement
For Year Ended March 31, 2020
(in thousands of Canadian dollars)
Revenues: 2020 2019
Net sales ………………………………………………………….. $929,000 $787,000
Investment income ……………………………………………. 9,000 7,000
Total revenues ………………………………………………….. $938,000 $794,000
Expenses:
Cost of goods sold ……………………………………………. $424,000 $335,000
Other operating expenses …………………………………. 141,000 103,000
Interest expense ……………………………………………….. 5,700 6,500
Income tax expense ………………………………………….. 73,000 69,000
Total expenses ………………………………………………. $643,700 $513,500
Profit ……………………………………………………………………. $294,300 $280,500
DRINKWATER INC.
Statement of Changes in Equity
For Years Ended March 31, 2019 and 2020
(in thousands of Canadian dollars)
Preferred Shares
Common Shares
Retained Earnings
Total Equity
Balance, April 1, 2018 $100,000 $250,000 $ 491,550 $ 841,550
Issuance of shares -0- -0- -0-
Profit (loss) 280,500 280,500
Dividends -0- -0-
Balance, March 31, 2019 $100,000 $250,000 $ 772,050 $1,122,050
Issuance of shares -0- -0- -0-
Profit (loss) 294,300 294,300
Dividends -0- -0-
Balance, March 31, 2020 $100,000 $250,000 $1,066,350 $1,416,350
DRINKWATER INC.
Balance Sheet
March 31, 2020
(in thousands of Canadian dollars)
2020 2019
Assets
Current assets: ……………………………………………
Cash ……………………………………………………….. $ 136,000 $ 98,000
Accounts receivable ……………………………….. $ 238,000 $ 219,000
Less: Allowance for doubtful accounts …… 2,300 235,700 2,100 216,900
Inventory ………………………………………………… 84,000 71,000
Prepaid insurance …………………………………… 50 30
Notes receivable, due in six months ………… 600 400
Total current assets ………………………………… $ 456,350 $ 386,330
Property, plant and equipment:
Property, plant and equipment assets ……… $1,621,100 $1,234,670
Less: Accumulated depreciation ………….. 325,000 1,296,100 208,000 1,026,670
Total assets …………………………………………………….. $1,752,450 $1,413,000
Liabilities
Current liabilities:
Accounts payable …………………………………… $ 219,000 $ 174,000
Unearned sales ………………………………………. 3,100 750
Total current liabilities ……………………………. $222,100 $174,750
Non-Current liabilities:
Notes payable, due in 2022 ………………………. 114,000 116,200
Total liabilities ……………………………………………. $ 336,100 $ 290,950
Equity
Contributed capital
Preferred shares; $1 non-cumulative;
20,000 shares issued and outstanding …..
$ 100,000
$ 100,000
Common shares
50,000 shares issued and outstanding …..
250,000
250,000
Total contributed capital………………………….. $ 350,000 $ 350,000
Retained earnings ………………………………………. 1,066,350 772,050
Total equity ………………………………………………… 1,416,350 1,122,050
Total liabilities and equity ……………………………….. $1,752,450 $1,413,000
Solutions Manual to accompany Fundamental Accounting Principles, 15th Canadian Edition. © 2019 McGraw-Hill Ryerson Ltd. 17-5
Calculate the ratio for 2020: Calculate the ratio for 2019:
F* or U*
Change
from
Previous
Year
F or U Relative to
Industry Average for
2020
Industry
Average
F*
or
U*
a. Current
ratio
b.
456,350 = 2.05
222,100
386,330 = 2.21
174,750 U 1.96:1 F
b. Quick ratio 372,300 = 1.68
222,100 315,300 = 1.80
174,750 U 1.42:1 F
c. Accounts
receivable
turnover
929,000 = 4.11
226,300
787,000 = 3.74
210,450 F 4.35 U
d. Days’ sales uncollected
235,700 x 365 = 92.61 929,000
216,900 x 365 = 100.60 787,000
F 95.12 F
e. Inventory
turnover 424,000 = 5.47
77,500
335,000 = 5.63
59,500 U 5.20 F
f. Days’ sales in inventory
84,000 x 365 = 72.31 424,000
71,000 x 365 = 77.36 335,000
F* 75.08 F*
g. Total asset
turnover 929,000 = 0.59
1,582,725
787,000 = .64
1,238,908 U 1.8 U
h. Accounts
payable turnover 424,000 = 2.16
196,500
335,000 = 2.10
159,500
F 8.45 U**
i. Debt ratio 336,100 x 100 = 19.18
1,752,450
290,950 x 100 = 20.59
1,413,000 F** 21% F***
j. Equity ratio 100 – 19.18 = 80.82 100 – 20.59 = 79.41 F 79% F
k. Times interest earned
373,000 = 65.44 5,700
356,000 = 54.77 6,500
F 50.16 F
Solutions Manual to accompany Fundamental Accounting Principles, 15th Canadian Edition. © 2019 McGraw-Hill Ryerson Ltd. 17-6
FFS 17-1 (concluded)
l. Profit margin 294,300 x 100 = 31.68
929,000
280,500 x 100 = 35.64
787,000 U 30.14 F
m. Gross profit
ratio 505,000 x 100 = 54.36
929,000
452,000 x 100 = 57.43
787,000 U 52.16 F
n. Return on total
assets 294,300 x 100 = 18.59
1,582,725
280,500 x 100 = 22.64
1,238,908 U 17.20 F
o. Return on
common
shareholders’
equity
294,300 x 100 = 25.17
1,169,200
280,500 x 100 = 31.81
881,800 U 31.0 U
p. Book value per
common share 1,316,350 = 26.33
50,000
1,022,050 = 20.44
50,000 F 14.91 F
q. Book value per
preferred share 100,000 = 5
20,000
100,000 = 5
20,000
No
change 22 U
r. Earnings per
share 294,300 = 5.89
50,000
280,500 = 5.61
50,000 F 4.32 F
s. Price-earnings
ratio 29 = 4.92
5.89
25 = 4.46
5.61 F 6.91 U
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
