Student: Finance and Foods Market

FI-516 WEEK 2 MINI field of study ASSIGNMENT Select a major industrial or commercial fraternity based in the United States, and listed on one of the major stock exchanges in the United States. Each student should hold a different partnership. Avoid selecting an restitution association or a bank, as the financial ratios for these financial businesses are different. relieve a 7 8 scalawag double spaced paper tell and demonstrating with calculations and financial data the following questions 1. What is the depict of the federation? What is the industry cabalor? * The comp any(prenominal) name is intact Foods Market Inc. Whole foods market, Inc. is the Food Retailers & Wholesalers industry. * The products include grocery, seafood, bakery, prepared foods, totality and poultry, dietary and nutritional supplements, vitamins, specialty (beer, wine-colored and cheese) body care products, floral and planetary house products and pet products. 2. What are the operating risks of the keep company? * Organic foods market has several laws and regulations relating to health, sanitization and food labeling. * FDA, FTC, CPSC, USDA and EPA exhaust find out standards for the manufacture, packaging, and advertising of organic products. If failure to fix these standards could result in the confiscation of merchandising and sales licenses. 3. What is the financial risk of the company (the debt to total capitalization ratio)? Debt to total capitalization ratio = Debt / (Shareholders uprightness + Debt) - 1,300,770 / 4,292,075 = 30. 31% 4. Does the company have any prefer stock? No, the Whole foods market, Inc. does not have any preferred stock. 5. What is the capital structure of the company? Short term heap of Long experimental condition Debt, Long Term Debt, Preferred contrast (if any), and market honour f Common Stock issued and nifty? * heavy(p) structure - meat Debt to replete(p) Equity 0. 60 - get along Debt to Total Capital 0. 60 - Total Deb t to Total Assets 0. 42 - Long-Term Debt to Equity 0. 58 - Long-Term Debt to Total Capital 0. 58 * The Whole foods market, Inc. does not have any short-term portion of long-term debt, and at that place is no preferred stock. Long-term debt $17. 44 million * The Whole foods market, Inc. has 300,000 packet authorise and $178. 89 million shares issued and outstanding at 2011. 6. What is the companys current essential 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 fringy Tax Rate? - 35% 9. What is the equal of Debt, onwards and after taxes? The cost of debt before taxes is 6. 7%, and after taxes is 4. 5%. 10. What is the represent of Preferred Stock (if any)? The Whole foods market, Inc. does not have any preferred stock. 11. What is the greet of Equity? - Cos t of Equity = (Dividends per share/current market rate of stock)+ fruit Rate of Dividends - = (0. 40 / $86. 47) + 0. 56% = 0. 01 12. What is the gold dividend yield on the Common Stock? The cash dividend yield on the parking lot stock is 0. 56 (0. 60%) 13. What is the weight down Average Cost of Capital of the company? The Weighted Average Cost of Capital is 7% 14. What is the Price Earnings tenfold of the company? - Current market value of stock / EPS - = $86. 47 / 2. 21 - = 39. 13 15. How has the companys stock been do in the endure 5 age?In May 2007, the price of harsh stock was $39. 74 per share, but it dropped to $8. 19 per share in 2009. Although after the niche of price drop, the price begins the set ahead up to $86. 47 per share now. 16. How would you assess the general risk structure of the company in terms of its Operating take a chances and Financial Risk (Debt to Capitalization Ratio)? Total debt/total equity 0. 0063 Total debt/total capital 0. 0063 17. Woul d you present in this company? Why? Or Why not? * Officially I would 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 clock that drop for about 15%. boilersuit the stock market seems to be static about the movement of the behavior optimistically. and then be hold within the little beta that show less variable quantity 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/ quotation mark/WFM/details/company-profile. html * 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/investing/stock/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/ look/Markets/Tearsheets/Financials? s=WFMNSQ