Student: Finance and Foods Market

FI-516 WEEK 2 MINI CASE naming Select a major industrial or commercial phoner based in the United States, and listed on one of the major root exchanges in the United States. Each student should select a diametric compevery. Avoid selecting an insurance comp each or a bank, as the fiscal ratios for these financial businesses are different. Write a 7 8 rascal double spaced paper answering and demonstrating with calculations and financial data the undermentioned questions 1. What is the name of the companionship? What is the industry sector? * The company name is self-colored Foods Market Inc. Whole foods market, Inc. is the Food Retailers & Wholesalers industry. * The products include grocery, seafood, bakery, prepared foods, meat and poultry, dietetical and nutritional supplements, vitamins, specialty (beer, wine and cheese) body care products, floral and kinfolk products and pet products. 2. What are the operating take chancess of the company? * Organic foods market ha s some(prenominal) laws and regulations relating to health, sanitation and food labeling. * FDA, FTC, CPSC, USDA and EPA crap set standards for the manufacture, packaging, and advertising of thorough products. If failure to qualify these standards could result in the confiscation of marketing and gross revenue licenses. 3. What is the financial risk of the company (the debt to total jacket crownisation ratio)? Debt to total capitalization ratio = Debt / (Shareholders equity + Debt) - 1,300,770 / 4,292,075 = 30. 31% 4. Does the company have any favored stock? No, the Whole foods market, Inc. does non have any preferred stock. 5. What is the capital structure of the company? Short term portion of considerable Term Debt, Long Term Debt, Preferred Stock (if any), and market prize f Common Stock issued and outstanding? * Capital structure - chalk up Debt to Total integrity 0. 60 - Total Debt to Total Capital 0. 60 - Total Debt to Total Assets 0. 42 - long-run Debt to Equity 0 . 58 - Long-Term Debt to Total Capital 0. 58 * The Whole foods market, Inc. does non have any short-term portion of long-term debt, and there is no preferred stock. long-run debt $17. 44 jillion * The Whole foods market, Inc. has 300,000 share authorized and $178. 89 million shares issued and outstanding at 2011. 6. What is the companys current actual of import? - * The current actual Beta is 0. 66 7. What would the Beta of this company be if it had no Long Term Debt in its capital structure? (Apply the Hamada Formula. ) - BL= B1 1+(1-T) (D/E) - = 0. 66 / 1+(1-0. 35) (0. 43) - 0. 52 8. What is the companys current Marginal Tax stray? - 35% 9. What is the live of Debt, before and after taxes? The cost of debt before taxes is 6. 7%, and after taxes is 4. 5%. 10. What is the Cost of Preferred Stock (if any)? The Whole foods market, Inc. does not have any preferred stock. 11. What is the Cost of Equity? - Cost of Equity = (Dividends per share/current market value of stock)+Growth Rate of Dividends - = (0. 40 / $86. 47) + 0. 56% = 0. 01 12. What is the funds dividend yield on the Common Stock? The cash dividend yield on the common stock is 0. 56 (0. 60%) 13. What is the burthen Average Cost of Capital of the company? The Weighted Average Cost of Capital is 7% 14. What is the Price Earnings Multiple of the company? - authentic market value of stock / EPS - = $86. 47 / 2. 21 - = 39. 13 15. How has the companys stock been performing in the remainder 5 geezerhood?In May 2007, the terms of common stock was $39. 74 per share, only when it dropped to $8. 19 per share in 2009. Although after the recession of price drop, the price begins the raise up to $86. 47 per share now. 16. How would you assess the overall risk structure of the company in terms of its Operating guesss and Financial Risk (Debt to Capitalization Ratio)? Total debt/total equity 0. 0063 Total debt/total capital 0. 0063 17. Would you invest in this company? Why? Or Why not? * Officially I wo uld invest portion of my assets into the portfolio. Since the price has raise from the last two years in an even steady price.Even though they have two small period of time that drop for about 15%. Overall the stock market seems to be passive about the performance of the behavior optimistically. Therefore be hold within the smaller of import that show less variable of the changes. I believe this could be a chance to be rich 18. The last page of your paper should be a Bibliography of the sources you used to prepare this paper. Bibliography * http//www. wikinvest. com/stock/Whole_Foods_Market_(WFM) * http//www. thestreet. com/quote/WFM/details/company-profile. hypertext mark-up language * http//yahoo. brand. edgar online. com/displayfilinginfo. spx? FilingID=8260392-165255- 169255&type=sect&TabIndex=2&companyid=10959&ppu=%252fdefault. asp viperx%253fcik%253d865436 * http//www. investopedia. com/terms/d/debt-to-capitalratio. aspaxzz1v5caUyeq * http//www. marketwatch. com/ spend/stoc k/wfm/profile * http//finance. yahoo. com/q? s=WFM&ql=1 * http//www. investopedia. com/terms/c/costofequity. aspaxzz1v5caUyeq * http//www. thestreet. com/quote/WFM/details/growth-rates. html * http//www. wikiwealth. com/wacc-analysiswfm * http//markets. ft. com/research/Markets/Tearsheets/Financials? s=WFMNSQ