Description 4. Using the data for Clorox Company (NYSE: CLX), presented below: Fiscal Year Sales EBIT Interest Expense Total Net Income Basic EPS from Total Operations Total Assets Accounts Payable Total Liabilities Retained Earnings Net Cash from Operating Activities Free Cash Flow a. C. 2016 $5,761 1,068 82 648 e. 4.97 778 2015 2014 2013 $5,655 $5,591 $5,623 1,002 954 966 99 119 562 574 606 95 606 4.39 4,518 4,164 4,258 490 431 440 4,221 4,046 2,163 4.26 4,104 1,923 1,739 874 749 767 629 4.30 4,311 413 4,165 1,561 775 581 2012 $5,468 888 123 543 4.09 4,355 412 4,490 1,350 612 420 b. From your calculations in part a, calculate each year's rate of growth. Using the example in part a, the ratio is 1.0187, so the percentage growth in sales for 2016 is 1.0187-1 or 1.87%. Calculate the ratio of each years' data to the previous year for each of the above items for Clorox. For example, for the year 2016, the ratio for sales is $5,761/$5,655 = 1.0187. Calculate the average growth rate (using the AVERAGE function) of each of the above items using the results you calculated in part b. These averages are arithmetic averages. d. Use the GEOMEAN function to estimate the compound annual average growth rate (CAGR) for each of the above items using the results that you calculated in part a. Be sure to subtract 1 from the result to arrive at a percent change. These are geometric averages. Compare the results from part c to those for part d for each item. Is it true that the arithmetic average growth rate is always greater than or
Description 4. Using the data for Clorox Company (NYSE: CLX), presented below: Fiscal Year Sales EBIT Interest Expense Total Net Income Basic EPS from Total Operations Total Assets Accounts Payable Total Liabilities Retained Earnings Net Cash from Operating Activities Free Cash Flow a. C. 2016 $5,761 1,068 82 648 e. 4.97 778 2015 2014 2013 $5,655 $5,591 $5,623 1,002 954 966 99 119 562 574 606 95 606 4.39 4,518 4,164 4,258 490 431 440 4,221 4,046 2,163 4.26 4,104 1,923 1,739 874 749 767 629 4.30 4,311 413 4,165 1,561 775 581 2012 $5,468 888 123 543 4.09 4,355 412 4,490 1,350 612 420 b. From your calculations in part a, calculate each year's rate of growth. Using the example in part a, the ratio is 1.0187, so the percentage growth in sales for 2016 is 1.0187-1 or 1.87%. Calculate the ratio of each years' data to the previous year for each of the above items for Clorox. For example, for the year 2016, the ratio for sales is $5,761/$5,655 = 1.0187. Calculate the average growth rate (using the AVERAGE function) of each of the above items using the results you calculated in part b. These averages are arithmetic averages. d. Use the GEOMEAN function to estimate the compound annual average growth rate (CAGR) for each of the above items using the results that you calculated in part a. Be sure to subtract 1 from the result to arrive at a percent change. These are geometric averages. Compare the results from part c to those for part d for each item. Is it true that the arithmetic average growth rate is always greater than or
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
This is all supposed to be done in excel using formulas.
Transcribed Image Text:9:35
Assignment Details
AIS F342 001 202202 (CRN 53069) MS Excel for Finance
Description
4. Using the data for Clorox Company (NYSE: CLX), presented below:
Fiscal Year
Sales
EBIT
Interest Expense
Total Net Income
Basic EPS from
Total Operations
Total Assets
Accounts Payable
Total Liabilities
Retained Earnings
Net Cash from
Operating Activities
Free Cash Flow
a.
C.
Copyright 2018 Cen
e.
2016
$5,761
1,068
2015
$5,655 $5,591 $5,623
1,002
954
966
95
99
606
562
82
648
4.97
4,518 4,164
490
431
4,221
4,046
2,163
1,923
778
874
606
◄ Previous
Dashboard
4.39
Calendar
749
2014 2013 2012
$5,468
888
123
543
4.26
4,258
440
4,104
1,739
767
To Do
629
11
119
574
4.30
Submit Assignment
4,311
413
4,165
1,561
LTE O
775
b. From your calculations in part a, calculate each year's rate of growth.
Using the example in part a, the ratio is 1.0187, so the percentage
growth in sales for 2016 is 1.0187-1 or 1.87%.
581
Calculate the ratio of each years' data to the previous year for each of
the above items for Clorox. For example, for the year 2016, the ratio
for sales is $5,761/$5,655 = 1.0187.
d. Use the GEOMEAN function to estimate the compound annual average
growth rate (CAGR) for each of the above items using the results that
you calculated in part a. Be sure to subtract 1 from the result to arrive
at a percent change. These are geometric averages.
4.09
Calculate the average growth rate (using the AVERAGE function) of
each of the above items using the results you calculated in part b.
These averages are arithmetic averages.
4,355
412
4,490
1,350
Compare the results from part c to those for part d for each item. Is it
true that the arithmetic average growth rate is always greater than or
equal to the geometric average (CAGR)?
612
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