FIN515 Financial Statement Analysis

   

Added on  2020-05-16

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Running head: FINANCIAL STATEMENT ANALYSISFinancial Statement AnalysisName of the Student:Name of the University:Author’s Note:Course ID:
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1FINANCIAL STATEMENT ANALYSISTable of ContentsQuestion I: General Mills, Inc.........................................................................................................2Part A:..........................................................................................................................................2Part B:..........................................................................................................................................3Question II: Kimberly-Clark Corporation.......................................................................................4Part A:..........................................................................................................................................4Part B:..........................................................................................................................................5References:......................................................................................................................................6
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2FINANCIAL STATEMENT ANALYSISQuestion I: General Mills, IncPart A: The following steps are followed to compute the book value per share and value-to-priceratio:There is no growth in free cash flow (FCF) after 2009.The subtraction between operating cash flows and investing cash flows is made for ccomputing FCF.Values of discounting factor are calculated and they are multiplied with the discount ratefor obtaining the present value (PV) until 2009.The FCF of 2009 is divided by the rate of discount for deriving the continuing value(CV).Accordingly, the enterprise value (EV) is obtained by dividing the FCF of each year bythe values of the discount rate and then addition is made with CV divided by thediscounting factor value of 2009. Equity value is derived by deducting total debt from EV.Equity value is divided by outstanding shares to obtain book value per share (Astami etal. 2017)
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