Stakeholders Equity

User Generated

wvzpneerl

Business Finance

ATI Career Training Center - Miami

Description

Instruction
The purpose of this assignment is to analyze stockholders' equity to recommend strategies for generating cash. For Macys retail store Understanding a company's position as it relates to stockholders and stockholders' equity is important when considering options and making decisions related to the strategies that should be implemented to generate cash for the company. The chief executive officer (CFO) of the company wants to generate cash for the organization and has tasked you to review the current stockholders' equity position for the company and use your findings to recommend strategies for generating cash flow. The CEO has requested you summarize your findings in a memo that is addressed to the CFO, but one that could be shared with other stakeholders. In the Form 10-K for the company you selected in the Topic 1 assignment, review and study the following information related to stocks: Identify the types of stock, such as common or preferred stock, currently issued, and outstanding. Identify the presence of treasury stock and its impact on overall stockholders' equity. Analyze debt vs. equity. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Excel: calculate the return on equity, debt to equity, capital structure leverage, and times interest earned ratios, and use them to identify the total make-up of stockholders' equity as compared to debt. Using the results of your analysis, write a 500-word memo to the CEO recommending and explaining the pros and cons of issuing new stock, reissuing treasury stock (if applicable), and issuing convertible bonds. Justify your recommendation using the 10-K stock information and ratios along with citing two substantiating academic sources that support your analysis of the stockholders' equity.

Explanation & Answer:
3 pages
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Explanation & Answer

Please find attached the working file. Will be sharing the memo soon in 20-25 mins.

Total Shareholders' Equity

Feb. 02, 2019
6,436

Feb. 03, 2018
5,733

FY2018

Issuance of $45 million of common stock, primarily related to the exercise of s

Common Stock, $.01 par value per share

307,800,430 shares outstanding as on 2nd March 2019

The authorized shares of the Company consist of 125 million shares of preferred stock (“Preferred Stock”), par value of $.01 p
common stock, par value of $.01 per share, with 333.6 million shares of common stock issued and 307.5 million shares of common
shares of common stock issued and 304.8 million shares of common stock outstanding at February 3, 2018 (with shares held
outstanding)

Treasury Stock

Balance at February 3, 2018.............
Stock issued under stock plans.........
Stock repurchases
Other..........................................
Deferred compensation plan distributions
Balance at February 2, 2019............

Shareholders' Equity:
Common stock (307.5 and 304.8 shares
outstanding)
Additional paid-in capital
Accumulat...


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