April 1, 2000
Note: All dollar values used in this analysis in relation to the financial statements are in millions unless otherwise noted.
Company Forecast 1-20
Appendix 1 21 Excell Spreadsheet
Table 1 – Income Statement 1
Table 2 - Balance Sheet 2
Table 3 – Cash Flow Statement 3
Table 4 – Common-size Income Statement 4
Table 5 – Common-size Balance Sheet 5
Table 6 – Financial Ratios 6
Table 7 – Other Key Ratios 7
Appendix 2 29
Cost of Capital
Documentation for Cost of Capital
The discount retail industry will continue to yield fearless competition. The major players in the industry, Wal-Mart, Target and Kmart continue to jockey for position and ranking by attempting to differentiate themselves to the American consumer. Lower costs and a higher quality of customer service remain as the consumer's preference in the discount retail industry. Wal-Mart continues its attempt to control the market with low prices and broad assortments while Target plans to trend toward a more modern, fashion based agenda. Kmart is forming strategic alliances with celebrities and is now a member of the e-commerce world. The most successful players will be those who continue expansion while reinvesting earnings with a continued emphasis in the Internet. Constant evaluation and re-evaluation is needed to strengthen ones position. Product mix remains crucial always adapting to the more trendy generations to come. Merchandising and distribution will be paramount, thus supply chain management a key to success (Profile-Kmart, 2000).
Expansion and technology will continue to require large allocations of funds. Growth spawns...