Earnings 17.82x 18.54x JM Smucker Co EPS $5.43 $5.43 Implied Share Value $100.86 $96.92 This one looks tougher than it really is. Simply discuss what the ratio means in terms of how the market (which determines stock prices) values the companies in terms of earnings You are assuming that market prices reveal expectations of future performance. Think of the Ben and Jerry’s case. 3. Refer to the table below from class and please select one of the accounts and corresponding application of discretion and explain how the discretion can mislead an analyst into overestimating or underestimating value. Account Accounts Receivable Inventory Plant Property and Equipment Goodwill and Intangibles Discretion applied to: What is a sale? Allowances FIFO, LIFO obsolescence spoilage, shrinkage and even Depreciation methods, merger accounting Reacquired franchise rights, trade names 4. Please explain the following equation for cash, and select and discuss three potential tradeoffs when a business attempts to maintain an amount of cash (Hint: consider strategy and operations). Cash = (Liabilities + Net Worth)-(Accounts Receivable + Inventory +Net Fixed Assets) 5. Pretend that you are the CFO and your boss, the CEO has told your company’s board of will be possible to increase sales by 20%. You consult the heads of the purchasing and collection departments as well as the treasurer. Based on their comments you have had to tell the CEO that she can’t keep her promise to the board. What did each of the managers tell you? 6. Select two of the following errors that can occur when estimating weighted average cost of capital and provide an example how the error can either overstate or understate the value of a project or investment. • Failure to use market value of equity • Failure to use current market cost of debt • Selection of inappropriate beta • Using a single WACC instead of multiple WACC 7. Select two of the following errors that can occur when projecting cash flow and provide an example how the error can either overstate or understate the value of a project or investment. • Overlook cannibalization • Include overhead • Include sunk cost • Including costs that are not relevant • ;Double counting inflation 8. Please provide an example of the consequences of inaccurately estimating WACC or forecasting cash flow (other than from getting a B+ in finance). Purchase answer to see full attachment User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

August 6, 2023/in Uncategorized /by online_admin

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Need 5 out of the 8 questions answered roughly 2 paragraphs each. Requires Originality and creativity. Read instructions carefully

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

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1. Warren Buffett’s investment philosophy includes the following
elements:
• Economic reality, not accounting reality
• Account for the cost of the lost opportunity
• Focus on the time value of money
• Focus on wealth creation
• Invest based on information and analysis
• The alignment of agents and owners is beneficial to firm value
Please select one of the six above and provide an original (that means
your own) example that applies Mr. Buffet’s maxims. The example
doesn’t even need to be about finance and I will let you use up one of
my allotted house examples if you have to.
2. General Mills and Kellogg are seeking to monopolize breakfast by
acquiring Smucker. What does the information below suggest about
each cereal company’s ability to add value to Smucker relative to that of
Smucker current management? The current market price for JM
Smucker stock is $108.44
General Mills
Kellogg
Comparable Firm
Multiple
Price/Earnings
17.82x
18.54x
JM Smucker Co
EPS
$5.43
$5.43
Implied Share Value
$100.86
$96.92
This one looks tougher than it really is. Simply discuss what the ratio
means in terms of how the market (which determines stock prices)
values the companies in terms of earnings You are assuming that market
prices reveal expectations of future performance. Think of the Ben and
Jerry’s case.
3. Refer to the table below from class and please select one of the
accounts and corresponding application of discretion and explain how
the discretion can mislead an analyst into overestimating or
underestimating value.
Account
Accounts Receivable
Inventory
Plant Property and Equipment
Goodwill and Intangibles
Discretion applied to:
What is a sale? Allowances
FIFO, LIFO obsolescence spoilage, shrinkage and even
Depreciation methods, merger accounting
Reacquired franchise rights, trade names
4. Please explain the following equation for cash, and select and discuss
three potential tradeoffs when a business attempts to maintain an amount
of cash (Hint: consider strategy and operations).
Cash = (Liabilities + Net Worth)-(Accounts Receivable + Inventory +Net
Fixed Assets)
5. Pretend that you are the CFO and your boss, the CEO has told your
company’s board of will be possible to increase sales by 20%. You
consult the heads of the purchasing and collection departments as well as
the treasurer. Based on their comments you have had to tell the CEO that
she can’t keep her promise to the board. What did each of the managers
tell you?
6. Select two of the following errors that can occur when estimating
weighted average cost of capital and provide an example how the error
can either overstate or understate the value of a project or investment.
• Failure to use market value of equity
• Failure to use current market cost of debt
• Selection of inappropriate beta
• Using a single WACC instead of multiple WACC
7. Select two of the following errors that can occur when projecting cash
flow and provide an example how the error can either overstate or
understate the value of a project or investment.
• Overlook cannibalization
• Include overhead
• Include sunk cost
• Including costs that are not relevant
• ;Double counting inflation
8. Please provide an example of the consequences of inaccurately
estimating WACC or forecasting cash flow (other than from getting a
B+ in finance).

Purchase answer to see full
attachment

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https://www.onlinefreelancersnetwork.com/wp-content/uploads/2020/08/logoOFN.png 0 0 online_admin https://www.onlinefreelancersnetwork.com/wp-content/uploads/2020/08/logoOFN.png online_admin2023-08-06 10:34:262023-08-06 10:34:26Description Need 5 out of the 8 questions answered roughly 2 paragraphs each. Requires Originality and creativity. Read instructions carefully 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview 1. Warren Buffett’s investment philosophy includes the following elements: • Economic reality, not accounting reality • Account for the cost of the lost opportunity • Focus on the time value of money • Focus on wealth creation • Invest based on information and analysis • The alignment of agents and owners is beneficial to firm value Please select one of the six above and provide an original (that means your own) example that applies Mr. Buffet’s maxims. The example doesn’t even need to be about finance and I will let you use up one of my allotted house examples if you have to. 2. General Mills and Kellogg are seeking to monopolize breakfast by acquiring Smucker. What does the information below suggest about each cereal company’s ability to add value to Smucker relative to that of Smucker current management? The current market price for JM Smucker stock is $108.44 General Mills Kellogg Comparable Firm Multiple Price/Earnings 17.82x 18.54x JM Smucker Co EPS $5.43 $5.43 Implied Share Value $100.86 $96.92 This one looks tougher than it really is. Simply discuss what the ratio means in terms of how the market (which determines stock prices) values the companies in terms of earnings You are assuming that market prices reveal expectations of future performance. Think of the Ben and Jerry's case. 3. Refer to the table below from class and please select one of the accounts and corresponding application of discretion and explain how the discretion can mislead an analyst into overestimating or underestimating value. Account Accounts Receivable Inventory Plant Property and Equipment Goodwill and Intangibles Discretion applied to: What is a sale? Allowances FIFO, LIFO obsolescence spoilage, shrinkage and even Depreciation methods, merger accounting Reacquired franchise rights, trade names 4. Please explain the following equation for cash, and select and discuss three potential tradeoffs when a business attempts to maintain an amount of cash (Hint: consider strategy and operations). Cash = (Liabilities + Net Worth)-(Accounts Receivable + Inventory +Net Fixed Assets) 5. Pretend that you are the CFO and your boss, the CEO has told your company’s board of will be possible to increase sales by 20%. You consult the heads of the purchasing and collection departments as well as the treasurer. Based on their comments you have had to tell the CEO that she can’t keep her promise to the board. What did each of the managers tell you? 6. Select two of the following errors that can occur when estimating weighted average cost of capital and provide an example how the error can either overstate or understate the value of a project or investment. • Failure to use market value of equity • Failure to use current market cost of debt • Selection of inappropriate beta • Using a single WACC instead of multiple WACC 7. Select two of the following errors that can occur when projecting cash flow and provide an example how the error can either overstate or understate the value of a project or investment. • Overlook cannibalization • Include overhead • Include sunk cost • Including costs that are not relevant • ;Double counting inflation 8. Please provide an example of the consequences of inaccurately estimating WACC or forecasting cash flow (other than from getting a B+ in finance). Purchase answer to see full attachment User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

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