How the chosen company is spending the money

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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.

Question 1: Calculate the Return on Equity (ROE) using the DuPont system.

Question 2: Calculate the Constant Growth Stock Valuation (CGSV) and compare it to the current stock price.

Question 3: 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.

Reference no: EM132682964

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