The company I chose my teacher said I can no longer use due to the company declaring...

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The company I chose my teacher said I can no longer use due to the company declaring bankruptcy.

Financial Returns and Capital Constraints

n order to be successful, companies must leverage their spending in ways that will add to their value and propel them in the marketplace. In this portion of your report you will use the skills and content you mastered in your Adaptive Coach this week, to analyze the business conditions and begin to create the big financial picture of how the chosen company is spending their money and managing their investments in the future value of their organization through purchases and research and development.

Include the following content in this section.

Formulate the expected financial returns and associated risks by completing the following calculations.
- Calculate the Return on Equity (ROE) using the DuPont system.
- Calculate the Constant Growth Stock Valuation (CGSV) and compare it to the current stock price.

Research your company’s industry and evaluate what type(s) of capital constraints your company must consider in order to be competitive in the market. Explain the appropriate financial techniques that would be used in this evaluation.

The Financial Returns and Capital Constraints

Must be two to three double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in theAshford Writing Center(Links to an external site.).

Must include a separate title page with the following:
- Title
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted

Must use at least two industry or scholarly sources in addition to the course text.
- TheScholarly, Peer Reviewed, and Other Credible Sources(Links to an external site.)table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.

Must document all sources in APA style as outlined in the Ashford Writing Center.

Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

bus401-adaptive-guidance-week-3-1-nf2cs1px.pdf

Sumit · Accepted Answer

Title Page
Student’s Name:
Course Name and Number: Principles of Finance (BUS 401)
Instructor’s Name:
Date Submitted:
Computation of Return on Equity using the DuPont system:
	Particulars
	2019
	2018
	2017
	Net Profit
	55,256
	59,531
	48,351
	Sales
	2,60,174
	2,65,595
	2,29,234
	Net Profit/Sales (1)
	0.21
	0.22
	0.21
	
	
	
	
	Assets
	3,38,516
	3,65,725
	3,75,319
	Sales/Assets (2)
	0.77
	0.73
	0.61
	
	
	
	
	Equity
	90,488
	1,07,147
	1,34,047
	Assets/Equity (3)
	3.74
	3.41
	2.80
	
	
	
	
	Return on Equity (ROE) (1*2*3)
	61%
	56%
	36%
	Industry Average
	57%
	54%
	30%
The Return on Equity has been calculated using the formula:
(Net Profit ÷ Sales) × (Sales ÷ Assets) × (Assets ÷ Equity)
Analysis: The Return on Equity ratio for the Apple Incorporation is 61% in the year 2019. The high ROE 
ratio indicates that the company has been using its assets effectively. The Company has consistently 
outperformed the Industry as the ROE ratio of the company is greater than the Industry Average in all 
the years.

The company I chose my teacher said I can no longer use due to the company declaring bankruptcy. Financial Returns and Capital Constraints n order to be successful, companies must leverage their...

The company I chose my teacher said I can no longer use due to the company declaring bankruptcy.

Financial Returns and Capital Constraints

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