3A-W'08�FAP-AAPL#3

3A-W'08�FAP-AAPL#3 - Asset turnover. Return on assets...

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Econ 3A - Financial Accounting - W’08 Apple Inc. Financial Analysis Project–Assignment # 3 Due in class (ON TIME!) Wednesday, March 12, 2008. Must be typewritten (not handwritten). DO YOUR OWN WORK!!! I. Use Apple’s annual report on Form 10-K for its 2007 fiscal year, which you downloaded in FAP#1. Do the following, using the format shown on the back of this page. Also, see the illustration for Kellogg’s on pages 655 and 657 of the text. a. Prepare a horizontal analysis of the 2007 and 2006 balance sheet and income statement data for Apple using 2006 as a base. Also show the dollar amount of increase or decrease. b. Prepare a vertical analysis of the balance sheet and income statement data for Apple for 2007 and 2006. c. Compute the following profitability ratios for Apple for the years 2007 and 2006. Where a formula calls for an average, instead use year-end numbers. Profit margin.
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Unformatted text preview: Asset turnover. Return on assets (ROA). Return on common stockholders equity (ROCE). Briefly explain the trend in ROA and its components (profit margin and asset turnover). Also, briefly explain whether or not Apple is effectively using leverage. II. Go to the following web site: http://finance.yahoo.com Enter Apples stock symbol AAPL. Under the section MORE ON AAPL (left side of the page) select the items listed below and answer the following questions. a. Basic Chart What is the trend in AAPLs stock price so far this year (2008)? b. Competitors What statistic tells you that the market anticipates higher future growth for AAPL than it does for DELL? Explain. c. Analyst Opinion According to analysts, what is the mean target price for AAPL? d. Major Holders How many shares of AAPL does Steve Jobs own? (Now you know why he is smiling in the picture above)....
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