Project Outline GM (GENERAL MOTORS) 

 

The most recent data should be used in your analyses (i.e., data from the most recently-filed Form 10-K).  For all calculations, show each formula used as well as the numbers used in the formula.  Explain any assumptions made and provide justifications for your assumptions.  Cite any sources used other than the company’s SEC filings.  The following is an outline for your individual project:

I.               Governance and Communication Analysis

a.    Answer and discuss the importance of the following:

                                               i.     Who is the company’s current CEO?  Is he or she also the Chair of the Board?

                                              ii.     Who serves on the board’s Audit Committee?  How many members are Financial Experts?  What experience qualifies them for that designation?

                                             iii.     What was the CEO paid last year?  What portion of his or her total pay was in the form of bonus?  In the form of stock-based awards?  What performance measures were used to determine the CEO’s pay?

                                           iv.     Who or what entity holds the highest percentage of the company’s stock?  Are most of the beneficial owners reported individuals or institutions?

                                            v.     How many common shares are outstanding? Is there more than one class of common stock outstanding?  If so, how many votes do shares of each class get? 

b.    Analyst Call

                                               i.     Listen to a recording of an analyst call (AKA earnings call or quarterly conference call) for your company.  Listen to about 15-20 minutes of the call and summarize your observations, including any questions that you might have wanted to ask the CEO/CFO, etc. 

II.              Industry and Strategy Analysis

a.    Industry Analyses

                                               i.     Porter’s Five Forces

1.     Rivalry among existing firms

2.     Threat of new entrants

3.     Threat of substitutes

4.     Buyer power

5.     Supplier power

                                              ii.     Value Chain Analysis

1.     Industry Value Chain

2.     Focus of your company

b.    Company Strategy Analysis

                                               i.     Is your company following a Low Cost Leader or a Product/Service Differentiation Strategy?

                                              ii.     How should this impact their financials?

 

III.            Accounting and Financial Analysis

a.    Recasted Income Statement (3 years)

b.    Recasted Balance Sheet (3 years)

c.    Common Size Income Statement (3 years)

d.    DuPont Analysis (1 year)

e.    Profitability Analysis Ratios (3 years)

                                               i.     SG&A to Sales

                                              ii.     Tax Expense to Sales

                                             iii.     Accounts Receivable Turnover and Days

                                           iv.     Inventory Turnover and Days

                                            v.     Accounts Payable Turnover and Days

                                           vi.     Profit Margin

                                          vii.     Return on Assets (ROA)

                                         viii.     Return on Equity (ROE)

                                            ix.     Gross profit margin

                                             x.     EBIT Margin

                                            xi.     Dividend Payout Ratio

                                           xii.     Sustainable Growth Rate

f.      Risk Analysis

                                               i.     Financial Risk Ratios (3 years)

1.     Current ratio

2.     Quick ratio

3.     Cash ratio

4.     Liabilities-to-equity ratio

5.     Interest coverage ratio 

6.     Long-Term Asset Turnover

7.     PP&E Turnover

                                              ii.     Non-Financial Risk Analysis

1.     Review the Risk Factors section of the company’s most recent 10-K and discuss the three factors mentioned which, in your opinion, may have the most significant impact on the future of the company

 

 

 

 

2.     Find and review your company’s CSR report

a.    If they prepare a CSR report, review and comment on its key findings and the risks those may pose for the company’s financial performance

b.    If they do not prepare a CSR report, find one of their competitors that does and review their report, and comment on how the key findings for that company do or do not apply to your company

IV.            Weighted Average Cost of Capital

a.    Use the CAPM to compute the required rate of return on equity capital for the company. 

b.    Determine the cost of debt (if any) and the cost of preferred stock (if any)

c.    Compute the weighted average cost of capital for the company as of the start of the next fiscal year.

d.    Discuss how this would be used to estimate the value of the company

V.             Forecasting

a.    Calculate projected net income for the company for the next five years based on forecasted income statements.

b.    Explain the process and assumptions used to make the forecasts for each line item of the forecasted income statements.

20 vocablury words you have to put the meaning of that 20 words , sentence and part of speech 

Hello,

 

I need you to rewrite the answer to a question. The answer is four paragraphs long. Please make sure it is well written. This is a very brief assignment.

Help needed to complete this assignement. Needs to be done with own answers and not copied from others work.

 

This course will be utilizing the Post-First feature. You will not be able to see your classmates’ posts until after you have made your own post. This is intentional. You must use your own work for answers to questions 1–5. If something happens that leads you to want to make a 2nd post for any of your answers to questions 1–5, you must get permission from your instructor.

 

1. a) Create a set of 5 points that are very close together and record the standard deviation. Next, add a 6th point that is far away from the original 5 and record the new standard deviation.

What is the impact of the new point on the standard deviation? Do not just give a numerical value for the change. Explain what happened to the standard deviation in words.  (4 points)

b) Create a data set with 8 points in it that has a mean of approximately 10 and a standard deviation of approximately 1. Use the 2nd chart to create a second data set with 8 points that has a mean of approximately 10 and a standard deviation of approximately 4. What did you do differently to create the data set with the larger standard deviation? (4 points)

                        

1. Put values matching the following data set into the data column.  (8 points)

50, 50, 50, 50, 50. 

Notice that the standard deviation is 0. Explain why the standard deviation for this one is zero. Do not show the calculation. Explain in words why the standard deviation is zero when all of the points are the same. If you don’t know why, try doing the calculation by hand to see what is happening. If that does not make it clear, try doing a little research on standard deviation and see what it is measuring and then look again at the data set for this question.

 

1. Put values matching the following data sets into the data columns. Record what the standard deviation is for each data set and answer the questions below.

                        Data set 1:       0, 25, 50, 75, 100

                        Data set 2:       30, 40, 50, 60, 70

                        Data set 3:       40, 45, 50, 55, 60

 

Note that all three data sets have a median of 50. Notice how spread out the points are in each data set and compare this to the standard deviations for the data sets. Describe the relationship you see between the amount of spread and the size of the standard deviation and explain why this connection exists. Do not give your calculations in your answer — explain in words.  (8 points)

For the last 2 questions, use the Project 1 Data set that is found in Course Content >> Syllabus and Assignment Instructions >> Assignment Instructions in Blackboard.

4.      Explain what an outlier is. Then, if there are any outliers in the Project 1 Data Set, what are they? If there are no outliers, say no outliers.  (4 points)

5.      Which 4 temperatures in the data set look to be the most questionable or the most unrealistic to you? Explain why you selected these 4 points. (4 points)