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Managerial Finance Rachel Balik, Anya Bishop, & Mai Saengkio.

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Presentation on theme: "Managerial Finance Rachel Balik, Anya Bishop, & Mai Saengkio."— Presentation transcript:

1 Managerial Finance Rachel Balik, Anya Bishop, & Mai Saengkio

2 INVESTMENTS Exxon Mobil (XOM) 450 shares at $87.02 Microsoft Corporation (MSFT) 1000 shares at 36.76 Target (TGT) 490 shares at $58.50

3 Target Target is a discount retail store Roseville, Minnesota in 1962. Higher-quality and stylish products

4 In 1998 Exxon and Mobil merge November of 1999 Exxon Mobil Corporation formed Integrated Oil and Gas Industry Exploration, production, transportation, and sales of crude oil and natural gas Operates in 3 segments Upstream, downstream, chemicals Upstream – operates to explore for and produce crude oil and natural gas Downstream – manufactures and markets petroleum products Chemicals – manufactures and markets petrochemicals Operates in 7 different regions around the world EXXON MOBIL CORPORATION

5 INVESTMENT STRATEGY ExxonMobil is an industry leader in almost every aspect of the energy, oil and gas, and petrochemical business Oil and energy would be a smart choice. Increase oil and energy prices Revenue and net income increase Continued RD to market new products and ideas New energy and fuel sources No Sign of downfall – High Margin

6 PERFORMANCE 450 shares at $87.02 = $39,159 52 Week: Low = $69.02 High = $95.27 Total Asset 2006 $217,359,000 2007 Q3 = $236,661,000 Net Income 2006 $39,500,000 2007 Q3 = $9,410,000 Sales 2006 $355,086,000 2007 Q3 = $91,160,0 Dividend Payment Quarter =$0.35 Annual = $1.40 Yield = 1.60% Payout Ratio = 19% Date = December 10, 2007 Profit Margin = 11.59% Operating Margin = 17.27% Total Debt 2007 Q3 8.99B Total Debt Ratio = 7.33 Price to Book Ratio = 4.06 Price Earnings Ratio = 13.00% EPS = $6.92 1 Year EPS Growth Rate = 10.8% Next 3-5 Year EPS Growth Rate = 35.8% ROI Capital = 28.88%

7 PERFORMANCE Exxon Mobil Corp. Market Cap =$491.29B P/E = 13.00 Price to Book = 4.06 Div. Yield = 1.60% ROA = 15.85% ROE = 33.33% Net PM = 9.39% LTD to Equity =.08 PetroChina Co. Ltd. Market Cap = $361.66B P/E = 18.71 Price to Book = 3.93 Div. Yield = 2.80% ROA = 13.52% ROE = 23.84% Net PM = 20.84% LTD to Equity = 0.11

8 5 YEAR OVERVIEW PRICE HISTORY

9 INVESTMENT RISK Trend of energy conservation ECO-friendly world Direct Brand Cost Criticism for business practices and environmental record Refining Margin Imbalance between crude oil and refined oil prices Economic Conditions Slowing economy Pricing Policy of OPEC U.S Government

10 OVERVIEW Amount Invested: $96,500.20 Account balance as of November 28, 2007 is $98,709.95 Interest:$721.65 Total earnings of $2,209.75 ROI: 2.29% Conservative Risk


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