Essay needed for Finance course

User Generated

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Business Finance

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Essay needed for Finance course 2-3 pages, No Plagiarism, Sources needed, APA format, and Video layout needed

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Explanation & Answer

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Video Creation


Explain what the results of your calculations say about the overall health of the
company and its future value. (1 – 1.5 minutes)
From the results of the calculation of Return on Equity, Sysco as a corporation is strong

and healthy. This is because it has a good rate of the return on equity of 57.16%. This indicates
that the corporation has the capability of getting 57.16% in profits for every dollar invested in the
corporation. This shows that it is profitable and potential investment partner for many investors.
On the other hand, the Constant Growth Stock Valuation (CGSV) indicates that the stock price
of the corporation could reduce in the long-run. It shows that the future stock price could reduce
from 68.08 to 39.07. This reduction directly indicates that it would be a big loss for the company,
which can have adverse effects on the investors.


Describe the data points you found in the annual report that relate to the company’s
capital constraints and spending trends. (1 – 1.5 minutes)
From their financial reports, what seems to be a financial constraint are the operating

expenses. The company has high operating expenses of $2.2 billion. Although this figure is
considerate considering their operating size, reducing this figure could help the corporation to
retain more profits and equally improve their return on equity (ROE). Another challenge that is
evident from their annual reports is their mode of financing assets. The company tends to rely on
debts to finance their assets, which has interest costs. There is need to change their mode of
financing assets, to ensure that they have a higher competitive advantage to gain more profits.
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Interpret the data points and explain whether or not the company is making
appropriate capital expenditure allocations. (30 seconds – 1 minute)

Based on the above data points, it is evident that the company is not managing their
expenses and assets as required. There is need for the company to reduce their operating
expenses and equally reduce their debts in financing assets. Having company assets is actually
more profitable than depending on other corporations’ assets. This will help them to reduce the
overhead margin.


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