Current ratio-debt-equity ratio and return on investment

Assignment Help Financial Management
Reference no: EM13876145

Ford Motor Company, Inc. Is the company maximizing the wealth of its shareholders? If not, what can they do to achieve this result? Review calculations and discussion of the following 6 ratios and financial measures: Current Ratio, Debt/Equity Ratio, Return on Investment, Earnings per Share, Profit Margin and Free Cash Flow. Conclude the analysis with other observations on the firm and whether your analysis differs from other analyses that are available. Indicate if there is any other measure you would want in order to make an investment recommendation. Finally, make an Investment Recommendation. For this recommendation, assume you have been asked by an investor, age 35, who wishes to invest in conservative stocks that will provide some income now but is mainly interested in growth over the next ten (10) years. Would Ford meet this investor’s investment goals?

Reference no: EM13876145

Questions Cloud

Calculate the amount of the last payment : Earl obtained a loan for 19000 dollars. He will pay it back in 35 months with an interest rate of 5 yearly compounded monthly. Each payment will be $200 larger than the previous payment. Calculate the amount of the last payment.
How much money can be withdrawn at the end : How much money can be withdrawn at the end of 20 years if $6,000 is deposited at the end of each year for 12 years, and no deposits are made after, where the fund earns 7.5 percent?
What is the book value of shareholders equity : Seven years ago sara distributors purchased a mailing machine at the cost of $368000.This equipment is currently valued at $172200 on today’s balance sheet but could actually be sold for $211400 .this is the only fixed assets the firm owns.net workin..
What is the future value of these investment cash flows : Trigen Corp. management will invest cash flows of $331,000, $616,450, $212,775, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 6.75 percent, what is the future value of th..
Current ratio-debt-equity ratio and return on investment : Ford Motor Company, Inc. Is the company maximizing the wealth of its shareholders? If not, what can they do to achieve this result? Review calculations and discussion of the following 6 ratios and financial measures: Current Ratio, Debt/Equity Ratio,..
What is the target stock price in one year : Fly Away, Inc., has balance sheet equity of $6.9 million. At the same time, the income statement shows net income of $855,600. The company paid dividends of $419,244 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 33, what i..
Develop a list of attitudes towards three brands : In chapter 7 of your textbook, Daniel Katz's functional theory of attitudes is discussed. For each of the four functions discussed, develop a list of attitudes towards three brands that you have had experience with. Have your attitudes changed ov..
Calculate the free cash flow : Ford Motor Company, Inc. Determine Ford’s consolidated free cash flow. Make a prediction as to what the company’s stock price would be in three (3) months. Review analysts’ estimates and predictions for the past year. 1. Calculate the free cash flow
Calculate equity ratio and weighted average cost of capital : Ford Motor Company, Inc. Capital structure. Review Ford’s consolidated financial statements. Calculate the company’s debt/equity ratio and the earnings per share & return on investment and the weighted average cost of capital. What is the meaning of ..

Reviews

Write a Review

Financial Management Questions & Answers

  Firms optimal capital structure calls

Assume that a firm's manager decides to fund its entire investment need this year by issuing $500 million in bonds. After-tax cost of these bonds is 6%. The firm’s optimal capital structure calls for 40% debt and 60% equity. The cost of equity is 16%..

  Calculate the annual cost of each of the three accounts

Judith Bao is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. Calculate the annual cost of each of the three accoun..

  What is the current price of the corporate bonds

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. If the yield to maturity is 8.1 percent, what is the current price of the bond?

  Required return equal to the expected return

A stock is trading at $55 per share. The stock is expected to have a year-end dividend of $2 per share and expected to grow at same constant rate g throughout time. The stocks required rate of return is 16 %( assume the market is in equilibrium with ..

  The bonds make semi-annual payments

Cross fade co issued 13 year bonds two years ago at a coupon rate of 9.3 percent. The bonds make semi-annual payments. If these bonds currently sell for 106 percent par value, what is the YTM?

  Proposed expansion of an existing subsidiary

You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 21 million. The cash flows from the project would be SF 5.9 million per year for the next five years. The dollar required ..

  Winners prize increases at the same rate

In 1895, the first Putting Green Championship was held. The winner’s prize money was $290. In 2010, the winner’s check was $1,310,000. What was the percentage increase per year in the winner’s check over this period?

  What is the companys equity price to book ratio

The company share price in the stock market is $42. The equity book value per share according to the balance sheet is $56. There are 540 million shares outstanding. What is the company’s equity price to book ratio?

  Portfolio consisting of three stocks

You want to invest $20,000 in a portfolio consisting of three stocks - Stock M, Stock D, and Stock G. The percentage investment is as follows: Stock M 40%, Stock D 35% and Stock G 25%. Expected returns for the three investments Stock M, Stock D, and ..

  Describe the strategic implications

Describe the strategic implications that would need to be considered in setting a price for a Campbell soup product (Any Soup).

  Strategy of social responsibility and corporate citizenship

Pursuing a strategy of social responsibility and corporate citizenship

  Zero-coupon bond with exactly same market value and duration

Suppose you have a short position in a 30-year 6%-coupon bond and a long position in a zero- coupon bond with exactly the same market value and duration. If all zero rates fall by 20 basis points, will your net position rise or fall in value? Explain..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd