complscore - 30% 1.5 3. Is the debt market traded? Yes or...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Your inputs Item Factors Follow-up Question Answer omplexity score 1. Multiple Businesses Number of businesses (with more than 10% o 2 4 Percent of operating income = 20% 1 Percent of operating income = 15% 0.75 Percent of operating income = 5% 0.25 Tax Rate 1. Income from multiple locales Percent of revenues from non-domestic locale 100% 3 Yes or No Yes 3 3. Headquarters in tax havens Yes or No Yes 3 4. Volatile effective tax rate Yes or No Yes 2 1. Volatile capital expenditures Yes or No Yes 2 Yes or No Yes 4 Yes or No Yes 4 Yes or No Yes 3 2. Volatile working capital items Yes or No Yes 2 Yes or No Yes 3 2. Substantial stock buybacks Yes or No Yes 3 Is your return on capital volatile? Yes 5 4. Unsustainably high return Is your firm's ROC much higher than industry Yes 5 1. Multiple businesses Number of businesses (more than 10% of reve 2 2 Percent of revenues=
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 30% 1.5 3. Is the debt market traded? Yes or No Yes Yes or No Yes Yes or No No Complexity Score = 51.5 Operating Income 2. One-time income and expenses 3. Income from unspecified sources 4. Items in income statement that are volatile 2. Different tax and reporting books Capital Expenditure s 2. Frequent and large acquisitions 3. Stock payment for acquisitions and investments Working capital 1. Unspecified current assets and current liabilities Expected Growth rate 1. Off-balance sheet assets and liabilities (operating leases and R&D) 3. Changing return on capital over time Cost of capital 2. Operations in emerging markets 4. Does the company have a rating? 5. Does the company have off-balance sheet debt?...
View Full Document

This note was uploaded on 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.

Ask a homework question - tutors are online