Apple Computer Corporation Case Study

Register to read the introduction… b) Why is company B’s ROE so much higher than company A’s? Does this mean that company B is a better company? Why or why not?

c) If companies A and B were combined (merged), what would be the impact on the results on ROE? Under what conditions would such a combination make sense?

d) What is the net income during the project period?

e) Compute the net cash flow from the project during the first year.

Problem # 3 [16]: Table 3 summarizes the financial conditions for Apple Computer Corporation. The closing stock price for Apple was $128.24 on September 26, 2008. The average number of outstanding shares was 892.11 million. On the basis of the financial data presented, compute the various financial ratios and make an informed analysis of Apple’s financial …show more content…
|Assets |
|Current Assets |
|Cash and Cash Equivalents 11,875,000 9,352,000 6,392,000 |
|Short-Term Investment 12,615,000 6,034,000 3,718,000 |
|Net Receivables 6,151,000 4,811,000 3,452,000 |
|Inventory 509,000 346,000 270,000 |
|Other Current Assets 3,540,000 1,413,000 677,000 |
|Total Current Assets 34,690,000 21,956,000 14,509,000 |
|Long Term Investment - - -