Business Finance

User Generated

zeftrr81733

Business Finance

Description

The company that needs to be used is Ulta Beauty.

  1. Identify a new product or service—either recently rolled out or about to be rolled out—in the company you chose in Module 1(Note: Information about new products or services can be found on a company's website or in the management's discussion and analysis section of the company's annual report.If you cannot locate a new product or service introduced by the company please invent something.)
  2. Analyze the quality of the company's existing products or services. Try answering the following questions about returns on the new product or service of your choice.
    • What is the return on equity earned by the company? Based upon this return, is the company picking good products or services?
    • What is the return on capital earned by the company? Based upon this return, is the company picking good products or services?
  3. Discuss how the company financed the initiative and why it was perceived to be advantageous. To answer this question, you might want to look at the following:
    • How sensitive has this company's value been to changes in macro-economic variables such as interest rates, currency movements, inflation, and the economy?
    • How sensitive has this company's operating income been to changes in the same variables?
    • How sensitive is the sector's value and operating income to the same variables?

Write a 2- to 3-page paper.Present your paper in Microsoft Word document format. All written assignments and responses should follow APA rules for attributing sources.

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Explanation & Answer

Attached.

Running Head: Business Finance

1

Business Finance
Institutional Affiliation
Date

Business Finance

2

Introduction
The identified company is Ulta Beauty, which offers products such as cosmetics, fragrance,
makeups, and services such as skin care, haircare tools and salon. The company has a wide range
of products that are already well established in the marketplace and it is still working on developing
new products and services depending on the customer requirements and specifications. The
products and services to be used in this analysis are the ones that have already been rolled in the
market. The company’s annual report to be used for the analysis are the financial statements for
the period ended 3rd February 2018.
Quality of Company’s Products and Services
The quality of the products and services offered by the company can be measured using
the return on equity and the return on the capital employed. It is through these return that the
company can determine if it picking the...


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