Assignment: Stock Exchange

Please see down few hints about W2 HW

 

Hint for A) select two stocks. one from each stock exchange.

Hint for B) calculate FCF  years 2013 and 2014.   So go to the website of each company and get the annual reports of year 2014. (part B)  and year 2017 (Part C)

· FCF =  NOPAT - additional investment in operational capital

· NOPAT  = EBIT (1-Tax rate)          use 2014 data.

· Additional operational capital =   AAA  ----   BBB

 

· AAA  =  [ (cash+inventory+Account Rec)  -- (Accounts payable + Accruals) ]   +  Net Fixed assets                             all    from 2014 data

 

 

· BBB  =   [ (cash+inventory+Account Rec)  -- (Accounts payable + Accruals) ]   +  Net Fixed assets                             all    from 2013 data

 

Hint for C)   get the annual reports of 2018. You have the financial statement of 2017  and 2018.

        

Calculate two ratios of each category (3 categories) for each company for each year.

Go to the income statement.

· go down to see the following:

EBIT                       Earnings before INTEREST and TAXES

-                             -

I                              Interest

------------------------------------------------------

EBT                        Earnings before taxes

-                             -

T                            Taxes

------------------------------------------------------

NI                            Net income

-------------------------------------------------------                               

to get the Tax rate   =   Taxes/Earnings before taxes       =   T/EBT