StudentShare solutions
Triangle menu

Corporate Finance Nautilus - Research Paper Example

Nobody downloaded yet

Extract of sample
Corporate Finance Nautilus

The appropriate discount rate is 6.04%, which is the weighted average cost of capital. The present value of the firm with this discount factor and the predicted cash flows is $12,885,000. Introduction Nautilus Inc. is a Consumer Fitness Products Company founded in 1986 and headquartered in Vancouver, Washington. The company was incorporated in 1993 in the state of Washington. The company targets individuals and enthusiasts who wish to enjoy the benefits of regular exercise and thereby improve their health. The company sells its products through two channels – direct and retail. The main objective of corporate finance is to maximize the value of shareholders by making proper investment and financing decisions. This paper examines the extent to which Nautilus has been successful in meeting this objective, and whether the stocks of the company represent a safe and worthwhile investment. Observations In order to evaluate the performance and financial status of the company, some of the important financial ratios, trends and market information were collected and analyzed. Some of the important financial figures for a period of five years between 2007 and 2011 are shown in Appendix-1. Relevant ratios have been calculated and are shown in Appendix-2. Sales The growth in sales for the year ended December 31, 2011 was 7.1% over the figures of 2010. However, for the three preceding years the growth has been negative. The trend has been good, and in each year the negative growth has been reduced, and the growth rate has become positive in 2011. The company operates in two segments, namely direct sales and retail sales. The segment wise sales figures for the years 2010 and 2011 are shown in Table-1. It can be seen that direct sales constituted almost 60% of the total sales, while retail sales made up the remaining 40%. A small portion of the total income has come from royalty. A look at the distribution of the sales shows that cardio products accounted for the major portion of the sales accounting for 42% of the direct sales in 2011 and 32% in 2010. Overall, cardio products accounted for 66.35% in 2011. Cardio products have also shown a healthy growth in direct sales but a small decline in retail sales. Strength products accounted for 31.02% in 2011. Percentage of Total Year Ended December 31, 2011 2010 Change % Change 2011 2010 Direct net sales: Cardio products (1) $75,982 $54,409 $21,573 39.60% 42.12% 32.30% Strength products (2) 31,079 42,259 -11,180 -26.50% 17.23% 25.09% Total Direct net sales 107,061 96,668 10,393 10.80% 59.34% 57.39% Retail net sales: Cardio products (1) 43,718 43,628 90 0.20% 24.23% 25.90% Strength products (2) 24,873 24,161 712 2.90% 13.79% 14.34% Total Retail net sales 68,591 67,789 802 1.20% 38.02% 40.24% Royalty income 4,760 3,993 767 19.20% 2.64% 2.37% Total net sales $180,412 $168,450 $11,962 7.10% 100.00% 100.00% Table-1 Distribution and Growth of Sales1 Equity Growth and Profitability Equity investors are concerned primarily with the return on their investment and the growth of their wealth. Various profitability ratios and equity growth are showninTable-2 Profitability 2011 2010 2009 2008 2007 Return on ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Corporate Finance Nautilus Research Paper Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/7673-corporate-finance
(Corporate Finance Nautilus Research Paper Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.net/finance-accounting/7673-corporate-finance.
“Corporate Finance Nautilus Research Paper Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/finance-accounting/7673-corporate-finance.
  • Cited: 0 times

Summary

Corporate Finance Nautilus Executive Summary Sales growth is very poor, and the products are not sufficiently balanced or diversified Equity investors cannot be pleased with the company’s performance, which offers very low or negative returns The company is not profitable, as it has been making heavy losses during most of the period under study Assets are not working hard enough, and have been showing steady decline in value Financial leverage has been increasing and is inappropriate, as it is not only high, but is also not accompanied by corresponding growth in assets…
Corporate Finance Nautilus
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Corporate Finance Nautilus"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Finance and Accounting Research Paper: Corporate Financial Scandals
The company was formed in 1985 by Kenneth Lay, after the merger of Houston natural gas and inter-north. It was a natural gas, energy trading, and electrical utilities company which was based in Houston Texas. Before its bankruptcy, Enron employed roughly 21,000 people.
11 pages (2750 words) Research Paper
Nautilus Incorporation
Financial Analysis – Nautilus Inc Executive Summary The financial analysis of Nautilus Inc. over a period five years from 2007 to 2011 has been conducted under this article by utilizing suitable ratios and computations. If the financial results of the company are analyzed in a summarized way, it can be concluded that the company has not performed in a sustainable and healthy manner.
6 pages (1500 words) Research Paper
Corporate finance
In addition, features like easy availability, broader applicability, high safety, reduced noise pollution, and renewability of natural gas improve the scope of natural gas industry. Clean Energy Fuels Corp. (CLNE) is the North America’s largest provider of transportation natural gas and the organization has currently spread its business from British Columbia to the Mexican border.
8 pages (2000 words) Research Paper
Finance
This however, has led to utilizing the stock exchange indicators of the three distinctive countries i.e. Abu Dhabi, Qatar and Saudi Arabia. We ascertain that all the preceding three markets eliminates aught assumption that the returns adopt a convention statistical distribution.
10 pages (2500 words) Research Paper
Finance
Prediction 15 Conclusion 16 Name of the Student Name of the Professor Subject Date Introduction The research report presents a general study and evaluation of the performance of an American company called American Eagle Outfitters (Bethel 20). The performance of American Eagle Outfitters is evaluated using four different types of analysis which is distribution analysis, marketing analysis, performance analysis and subsequent projection of the results for the future.
8 pages (2000 words) Research Paper
Corporate Finance Research Paper
The market is largely fragmented with many small to medium players serving different niches of their target market. Essentially, the market is distributed into three distinct categories based on product classification. Carlton falls under the category of Chemical suppliers supplying chemicals to independent distributors who then sell to the end users.
5 pages (1250 words) Research Paper
Strategic Corporate Finance Workshop
Even though a company may be successful in maximising its profits, it does not necessarily follow that the company would be successful in maximising its Earning Per Share. So the benefit would not automatically flow to the shareholder. Also, though the company may earn higher profits, the same may not flow to the shareholder immediately.
6 pages (1500 words) Research Paper
Finance
GAAP defines the common accounting procedures that accountants use to record and present accounting information (Wilder & Mauldin, 1999). Notably, GAAP applies in all sectors including the health sector where they seek to
4 pages (1000 words) Research Paper
Corporate finance
The hypothesis also tells that buying and selling of securities is all about of chances and there is no scope of skills. Recently the global economy has gone through a very critical phase. Currently the global economy is in the recovery mode and going towards right
6 pages (1500 words) Research Paper
Islamic finance
Secular Islamic modernists and historians view Islamic banking as a recent situation whereas revivalists view it as old as religion as its principles were derived from the Quran. Early
2 pages (500 words) Research Paper
Comments (0)
Click to create a comment
Let us find you another Research Paper on topic Corporate Finance Nautilus for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us