Corp._Report_Part_IV

Runnin Head: CORPORATE REPORT

Corporate Report / Industry Project

Phillips Gomez

Southern Nazarene University

April, 2020

SECTION I

My strategy was based on companies that are normally stable throughout the year and on companies that are constantly growing, such as a company like Facebook (FB). Currently with the decline of the market and everything that is happening with the global pandemic, there have been many losses through that.

One of the things that I would currently change due to the COVID-19 issue is investing in companies with less debt because they were able to recover in a faster way. Companies such as Airbus, which is a company that has a lot of quality and that do not have as much debt and at this time the share price would be a good investment because they currently suffer transitory problems. Also, investing in cleaning companies such as United Health Care (UEEC), which is a fairly stable company and with everything as it is, the market remains stable because people continue to invest in them.

Name of the Company	Symbol	Current Price per Share	Original Cost per Share	Number of Shares	Total Value
Apple	AAPL	$262.47	$324.45	4.38B	$23,676.82
Sony	SNE	$60.87	$71.80	1.27B	$7,969.80
Facebook	FB	$165.55	$222.23	2.41B	$23,439.15
Nike	NKE	$84.63	$99.84	1.25B	$14,676.48
Toyota Motor	TM	$122.41	$141.55	1.63B	$10,191.60

Total Value Portfolio Value : 79,953.85

SECTION II

· Stock Value

P= D/r-g

P (Nike) = 0.98 x (1+0.03)/0.10-0.03

P (Nike) = $14

Starting from the concept that the dividend is the profit that the company generated in the fiscal year, if a company does not have the dividend, the value of that company will always be defined by the cost of the value of the company.

The difference in formula 1 with the current price of the Nike $ 84 share is enough because the calculation in the formula is made with predetermined constant variables g = 3% and 10% and possibly these values differ from reality and the difference between the two variables is much smaller than 0.07. The smaller that number is, the higher the amount would be.

· Dividend Policy

Nike's policy is that Nike is that the company is a consistent dividend payer and has increased dividends in recent years. And the book talks about in section 17.2 "Dividend policy in a world of no taxes and no transaction costs" of a Policy 1 is a high-dividend-payout policy in which the company will declare an annual cash dividend and the company Nike It is quite related to this policy.

The second relationship in the text is also about policy 2 in section 17.2 is a no-dividend-payout policy in which the company will reinvest all earned money rather than paying it out to the shareholders. They are related, follow a financial strategy of paying regular dividends and repurchasing shares to increase profits for shareholders.

· Capital Structure

Debt + equity = 100%

6.656 billion. +23,717 millions = 30,373,000,000.00 = 100%

23,717 millions is the 71.09% y 6.656 billion is the 28.91%

The beta of a share on the Yahoo.finance page measures risk, expressing when the share price tends to change compared to the general market. Beta is measured with a benchmark.

· Company Summary

I would have invested in this company even knowing the debt since it has a debt of 28.91% but it is a company that is a company that does not have a debt of such high rank and a company with little debt could borrow a little in times of crisis to buy profitable businesses from companies that have a delicate financial situation and thus improve our profitability by investing in them. With this percentage of capital management of 28.91% in general, it is a company that has the ability to borrow in a time of crisis and improve its performance in a good way in the future.

References

SNU Bus Fin S20 - Free stock market game. (2020, January 8). Retrieved from https://www.marketwatch.com/game/snu-bus-fin-s20/portfolio

Nike, Inc. (NKE) Stock Price, Quote, History & News. (2020, April 6). Retrieved from https://finance.yahoo.com/quote/NKE?p=NKE