Reference no: EM133151475
Toyota Case Analysis:
Please use a couple of concise and directed sentences to type your responses to each of the following questions
1. Please comment on the trend in Toyota's operating income over the past five years.
2. Please remember that Beta is a measure of risk that consequently drives the cost of equity number and consequently the weighted average cost of capital. Please review Toyota's beta and comment on whether you believe this to be an accurate representation of Toyota's risk.
3. Review the market weights of debt and equity for Toyota relative the others in the industry. Is this level of debt too high, too low, misrepresented? Why?
4. Review Toyota's economic profit trend for the five years. Is this trending in the right direction, too high, too low, misrepresented because of some factor? How or why?
5. Remember that strengths are internal to the firm and are things that allow positive net present value enhancing projects in the future. What do you believe to be Toyota's biggest internal strength? Why?
6. Remember weaknesses are also internal to the firm and are things that threaten the profitability or survival of the firm. What do you believe to be Toyota's greatest weakness Why?
7. Wealth creating opportunities are external to the firm. Using what you learned in your prior courses, in the areas of product, supply chain management, human capital, or finance, what single opportunity does Toyota have that you believe will add the greatest wealth for Toyota shareholders in the future? Why?
8. Rewording the prior question, what single opportunity does Toyota have that you believe will add the greatest benefit for another stakeholder group in the future? Please name the stakeholder group and explain the opportunity and why?
9. Threats are also external to the firm. Using what you learned in your prior courses, in the areas of product, supply chain management, human capital, or finance, what single threat does Toyota face that you believe could impact the financials of the firm or possibly the survival of the firm. Why?
10. List and describe something that is unique to Toyota that you believe has value?