Evaluate the investment opportunity presented by the companies. If the team could invest $100,000 in one of the companies, which would the team select? Provide the rationale.

Evaluate the financial opportunity presented by the companies. If the team was going to lend money to one of the companies reviewed, which one would it be? Defend the team’s decision.
Walmart is the safest company to lend money to. Their current ration and debt to assets ratios are the strongest. What this means is, that if their cash flow were to suffer or the company encountered trouble with profits, they have this high yield of equity to liquidate against when compared to current outstanding liabilities. The same can be said with Time Warner, however their numbers are slightly less optimistic. JC penny is the least attractive company to take on this risk with. Not only are their ratios the worst when talking about assets and liability, their profit margin is in the red. Its unwise to lend money to a company that is proving that are losing money in normal operations. This is only compounded by the fact they have the least assets to liquidate after taking their liabilities into consideration.

Evaluate the investment opportunity presented by the companies. If the team could invest $100,000 in one of the companies, which would the team select? Provide the rationale.
Time Warner appears to be the best company to invest into. If you were to become a stockholder and expect dividends, then the company with the higher profit margin is the one drawing in more profit, which makes the company more successful and increases the value of your shares. This allows more cash for the reporting period to be returned as dividends. You also have the option to sell your stocks as a profit, since it would be presumed their value increased as the company is making money.

Walmart’s profit margin is very tight. This doesn’t allow for much in terms of stock value increases or shareholder value. While their current ratio is good, the whole idea of investing is to make money. This means the company needs to be making a healthy amount of money.

JC penny is losing money. This naturally would make it a foolish choice to invest into.

Evaluate the employment opportunity presented by the companies. If the team members could work for any of the companies, which company would the team select? Defend the team’s decision.
Time Warner is the one to work for between these companies. One of the quickest ways for companies to slash operating costs is to terminate the employment of the workforce in areas lacking performance or growth. It’s faster and easier to save money on labor costs than the lengthier process of liquidating long term assets such as real estate. This is assuming the company is not bound by a collective bargaining agreement. This can impact the balance sheet in a positive way, lowering your operating costs against whatever positive cash flow you have, and increasing your net income overall. Time Warner has the best profit margin. This means they are the least likely to have to make painful cuts. In fact, they are the most likely to expand their operations because of their success and increase their workforce.

While Walmart’s numbers tell us that the company is very unlikely to go bankrupt or be able to pay its bills, its profit margin is very slim. It may exercise the option of employee layoffs to try and increase the profit margin.

JC Penny once again falls behind. All of their numbers are dismal. Not only is there a high likelihood of employee layoffs possible in their scenario, the longer the company is in the red the more likely they are to have to close stores or even go bankrupt. Leaving this the worst option for employment.

The post Evaluate the investment opportunity presented by the companies. If the team could invest $100,000 in one of the companies, which would the team select? Provide the rationale. appeared first on Nursing Writing Services.

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"