FINANCE ASSIGNMENT

Finance Assignment

Finance Assignment

Task 1

Apple Inc

Apple Inc. (AAPL) may have a relatively small share of the worldwide market for computers (about 3.3% in the third quarter of calendar 2008, according to market research firm IDC), but in the digital media player market, it has dominated with the success of the iPod.



WACC of Apple Inc 

The multi-faceted success the company has achieved this decade is reflective of what we view as its compelling products and services, effective sales strategies, and at least relatively stable pricing. The company's direct sales model has required notable capital outlays, but it has aided margins. Gross margins improved to 34.3% in FY 07 from 34.0% in FY 07 and 29% in FY 06. However, the company has signaled that shifts toward more consumer products in the production mix may narrow gross margins in FY 09. Rising unit sales and relatively stable pricing contributed to AAPL amassing over $24 billion in net cash and investments as of September 2008, up from over $15 billion as of September 2007. The company had no long-term debt at the end of FY 08.We think the initiation of a stock buyback program or dividend could effectively address what we consider to be a state of overcapitalization. 

WACC of Apple Inc

Task 2

Advanced Engineering Co.

About half of its total sales are developed from the US, with over a third of incomes approaching pattern its gastrointestinal treatments.

 

PRICES

Date

Open

High

Low

Close

Volume

Adj Close*

6-Nov-09

44.28

45.02

44.25

44.98

2045000.00

44.98

5-Nov-09

44.75

45.01

44.69

44.93

1308900.00

44.93

4-Nov-09

44.45

45.13

44.40

44.80

1543300.00

44.80

3-Nov-09

43.99

44.37

43.90

44.34

1232200.00

44.34

2-Nov-09

44.32

44.67

44.19

44.43

1340000.00

44.43

30-Oct-09

45.24

45.50

44.75

44.91

1565500.00

44.91

29-Oct-09

45.17

45.78

45.06

45.75

3169900.00

45.75

28-Oct-09

45.69

45.95

45.11

45.17

2106500.00

45.17

27-Oct-09

46.07

46.45

45.81

46.19

1949000.00

46.19

26-Oct-09

45.48

46.03

45.10

45.33

1063800.00

45.33

23-Oct-09

45.73

45.73

45.03

45.18

1059400.00

45.18

22-Oct-09

45.80

46.01

45.45

46.00

1155900.00

46.00

21-Oct-09

45.67

45.99

45.35

45.40

2045900.00

45.40

20-Oct-09

45.77

45.78

45.03

45.08

1735400.00

45.08

19-Oct-09

45.62

46.38

45.56

46.01

1744500.00

46.01

16-Oct-09

44.86

45.11

44.69

44.97

1274800.00

44.97

15-Oct-09

45.00

45.16

44.84

45.07

1054100.00

45.07

14-Oct-09

44.73

44.76

44.36

44.65

1296400.00

44.65

13-Oct-09

44.28

44.40

43.78

43.90

2070900.00

43.90

12-Oct-09

44.34

44.48

44.02

44.14

1519700.00

44.14

9-Oct-09

44.05

44.14

43.87

44.10

1118900.00

44.10

8-Oct-09

44.35

44.55

44.16

44.29

993400.00

44.29

7-Oct-09

43.97

44.06

43.76

44.01

1142900.00

44.01

6-Oct-09

44.22

44.50

44.18

44.27

1463400.00

44.27

5-Oct-09

44.00

44.46

43.84

44.21

1762900.00

44.21

 

 

A share cost drop of 4% in November 2009, following an broadcast of an harmful conclusion at the European Patent Office (EPO) against the matter patent for Nexium, comprises a worth of about £1.5 Billion for a lone patent.

Whilst the Advanced Engineering Co. share cost may well rally when a full investigation of the Nexium market and genuine influence of the EPO conclusion are made, for now the implication is huge.

We are often inquired how much a patent is worth and of course, short of mentioning the issue to an accountant professional in valuations, can labour to supply a satisfactory response, pointing as we might to likely income creeks from distinct mechanical parts and/or nations as being hugely influential in the worth to a promise purchaser. (Arrow 2008)

Advanced Engineering Co.'s share cost has soared by 9% as it profited acceptance to deal a best-selling pharmaceutical in the world's large-scale market. The leap in share cost arrives regardless of an general down turn on the London's key FTSE 100 catalogue which shut at its smallest grade since April 2008.

Advanced Engineering Co. PLC lifted its full-year earnings forecast on Thursday, banking on continued gains from its swine flu vaccine, after posting a 22 percent hike in third quarter profits. But investors were not swayed by the positive topline result, which was fueled by a number of one-off factors, and the London-based company's share price dropped amid concern about its ability to contend with growing generic competition to its drugs. Advanced Engineering Co. posted net profit of $2.12 billion for three months to the end of September, up from $1.74 billion in the same period a year ...