Samsung Electronics

Income Statement All numbers in thousands Revenue 12/31/2016 12/31/2015 12/31/2014 Total Revenue 201,870,000,000 200,653,482,000 206,205,987,000 Cost of Revenue 120,280,000,000 123,482,118,000 128,278,800,000 Gross Profit 81,590,000,000 77,171,364,000 77,927,187,000 Operating Expenses Research Development - Selling General and Administrative Non Recurring Others Total Operating Expenses 172,630,000,000 174,240,040,000 181,180,916,000 Operating Income or Loss 29,240,000,000 26,413,442,000 25,025,071,000 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense -776,511,000 -592,940,000 Income Before Tax Income Tax Expense 7,990,000,000 6,900,851,000 4,480,676,000 Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income 22,730,000,000 18,694,628,000 23,082,499,000 Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Income statement An income statement is a financial statement that reports a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period.

Balance Sheet All numbers in thousands Period Ending 12/31/2016 12/31/2015 12/31/2014 Current Assets Cash And Cash Equivalents 88,231,400,000 22,636,744,000 16,840,766,000 Short Term Investments - 48,842,298,000 44,962,655,000 Net Receivables 24,279,200,000 28,520,689,000 28,234,485,000 Inventory 18,353,500,000 18,811,794,000 17,317,504,000 Other Current Assets 2,832,568,000 4,444,023,000 Total Current Assets 130,864,100,000 124,814,725,000 115,146,026,000 Long Term Investments 12,593,100,000 13,608,828,000 17,899,970,000 Property Plant and Equipment Goodwill 910,539,000 739,576,000 Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges 5,589,108,000 4,526,595,000 Total Assets 262,174,300,000 242,179,521,000 230,422,958,000 Current Liabilities Accounts Payable 6,485,000,000 6,187,291,000 7,914,704,000 Short/Current Long Term Debt 15,282,400,000 12,873,963,000 11,265,519,000 Other Current Liabilities 2,837,400,000 21,309,906,000 21,414,466,000 Total Current Liabilities 9,322,400,000 50,502,909,000 52,013,913,000 Long Term Debt 1,424,046,000 1,379,871,000 Other Liabilities Deferred Long Term Liability Charges 1,697,545,000 1,239,933,000 Minority Interest Negative Goodwill Total Liabilities 69,211,300,000 63,119,716,000 62,334,770,000 Stockholders' Equity Misc. Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock 897,500,000 5,301,407,000 Retained Earnings 185,132,014,000 169,529,604,000 Treasury Stock 192,065,500,000 -17,556,654,000 -12,649,286,000 Capital Surplus 72,944,000 77,682,000 Other Stockholder Equity Total Stockholder Equity Net Tangible Assets Balance sheet A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders. The balance sheet adheres to the following formula: Assets = Liabilities + Shareholders' Equity

Date Closing Price December 29, 2016 1,802,000.00 December 30, 2015 1,260,000.00 December 31, 2014 1,327,000.00 Historical prices Some assets have their values calculated at a certain point or points during the day rather than in real time. This is referred to as the valuation point. If an investor happens to trade at the exact point that the net asset value is calculated then he or she does not have to worry about gaps in time. However, if an investor trades before or after the net asset value is calculated he or she will be working off an old calculation. This means that the valuation carries the risk of being inaccurate.

Samsung Electronics Co 7.7% | Maturity:2027 Beta-KS 0.46 Samsung Electronics Co 7.7% | Maturity:2027 Issue Details Amount Outstanding Par Value Issue Size 100.0 Mil 1,000   Coupon Coupon Type Coupon Frequency 7.70% Fixed Semi-Annually Day Count Basis First Payment Date Accrual Start Date 30/360 ##### 10/2/1997 Payment Currency Collateral Type US Dollar --- Bond issues   When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation. The investor agrees to give the corporation a specific amount of money for a specific period of time in exchange for periodic interest payments at designated intervals. When the loan reaches its  Maturity Date, the investor’s loan is repaid. CPN = .077 𝑋 1000 2 =38.50

Cost of Equity Analysis CAPM: ri = rf + βi × (RMkt - rf) Working Notes Risk Free Rate "r(f)"=2.27600000% Market Rate "R(mkt)"= 9.776% Beta "Bi"=0.46 [Market Premium: 7.5%] ***CAPM=Cost of Equity=2.27600000% + 0.46 * 7.5% *R(mkt)-r(f)=7.5% *R(mkt)-2.276%=7.5% ***Cost of Equity=5.726%*** *R(mkt)=7.5%+2.276% *R(mkt)=9.776% Cost of equity The cost of equity is the return a company requires to decide if an investment meets capital return requirements; it is often used as a capital budgeting threshold for required rate of return. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership. The traditional formulas for cost of equity (COE) are the dividend capitalization model and the capital asset pricing model.

Cost of Debt Analysis *Latest two-year average debt was used in Cost of Debt Analysis *Interest Expense: $484.792 Mil. *Book Value of Debt (Tot.)= $10,610.457 Mil. ***Cost of Debt=Interest Expense/Tot. Book Value of Debt ***Cost of Debt=$484.792/10,610.457=4.569%*** Cost of debt Cost of debt refers to the effective rate a company pays on its current debt. In most cases, this phrase refers to after-tax cost of debt, but it also refers to a company's cost of debt before taking taxes into account. The difference in cost of debt before and after taxes lies in the fact that interest expenses are deductible.

Weighted average cost of capital (WACC) is a calculation of a firms cost of capital in which each category of capital is proportionately weighted.

Samsung Electronics Co Ltd (SSNLF) Weighted Average Cost Of Capital (WACC). (n.d.). Retrieved February 9, 2017, from http://www.gurufocus.com/term/wacc/SSNLF/Weighted-Average-Cost-Of-Capital- WACC/Samsung-Electronics-Co-Ltd SSNLF Samsung Electronics Co Ltd PINX:SSNLF Stock Quote Price News. (n.d.). Retrieved February 10, 2017, from http://www.morningstar.com/stocks/PINX/SSNLF/quote.html Staff, I. (2015, September 29). Weighted Average Cost Of Capital - WACC. Retrieved February 10, 2017, from http://www.investopedia.com/terms/w/wacc.asp Work cited