Shareholder Wealth Maximization (ANY publicly
Traded company)Locate one publicly traded corporation that you believe is
maximizing shareholder wealth. Using financial ratio analysis, justify why
you believe the corporation is maximizing shareholder wealth. Locate one
publicly traded corporation that you believe is not maximizing shareholder
wealth. What is the market price of the stock of this corporation? How
does it compare with the intrinsic value of the corporation? Justify why you
believe the corporation is not maximizing shareholder wealth. Calculate
and analyze the following thirteen financial ratios of the corporation and
compare them to the appropriate industry average: Current
ratio Quick ratio Cash ratio Total debt ratio Times interest earned ratio Cash
coverage ratio Inventory turnover ratio Receivables turnover ratio Profit
margin Return on assets Return on equity Price-earnings ratio Market-to-book
ratio Create a plan of action to get the corporation back to
where the corporation is maximizing shareholder wealth. What do you
anticipate will be the market price of the corporation’s stock if the
corporation successfully implements your plan of action?
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