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Finish the part 3 and 4 combain with part 1 &2. Separate the part 3 and part 4. The Part 4 needs 9 pages. Part 3 needs about 1000 words ( 3 pages). All requirements in the document Part 3&4. You can read that carefully. Follow the Part 1 &2 to finish the part 3&4. In addition, separate part 3&4. That's all MARKET CAPITALIZATION Each company has at least $10 Billion in Market Capitalization. INDUSTRY COMPANY MARKET CAP Telecommunications AT&T $207.52 B Ana: https://www.macrotrends.net/stocks/charts/T/at-t/market-cap Pharmaceutical & Biotechnology Bristol-Myers Squibb $143.34 B Ana: https://www.macrotrends.net/stocks/charts/BMY/bristol-myers-squibb/market-cap Technology Hardware & Equipment Apple, Inc. $1000 B Ana: https://www.macrotrends.net/stocks/charts/AAPL/apple/market-cap Oil & Gas Producers Exxon Mobil Corp. $186.55 B Ana: https://www.macrotrends.net/stocks/charts/XOM/exxon/market-cap Food Producers Kellog Co. $21.77 B Ana: https://www.macrotrends.net/stocks/charts/K/kellogg/market-cap PORTFOLIO Diversified Portfolio Initial Investment $ 1,000,000.00 As of Friday, May 8 INDUSTRY COMPANY STOCK EXCHANGE STOCK SYMBOL CLOSING PRICE # OF SHARES TOTAL VALUE OF SHARES LAST DIVIDEND (Amount) LAST DIVIDEND (Date) EXPECTED EX-DIVIDEND (Amount) Expected Ex-Dividend (Date) Telecommunications AT&T, Inc. NYSE T $ 29.79 Ana: https://finance.yahoo.com/quote/T/history?p=T 6,000 $ 178,740.00 $ 0.52 8-Apr-20 $ 0.52 Ana: https://www.dividendmax.com/united-states/nyse/telecomms/atandt-inc/dividends 9-Jul-20 Pharmaceutical & Biotechnology Bristol-Myers Squibb NYSE BMY $ 61.05 Ana: https://finance.yahoo.com/quote/BMY/history?p=BMY 3,000 $ 183,150.00 $ 0.45 2-Apr-20 $ 0.45 Ana: https://www.dividendmax.com/united-states/nyse/pharmaceuticals-and-biotechnology/bristol-myers-squibb/dividends 1-Jul-20 Technology Hardware & Equipment Apple, Inc. NASDAQ AAPL $ 310.13 Ana: https://finance.yahoo.com/quote/AAPL/history?p=AAPL 1,000 $ 310,130.00 $ 0.82 8-May-20 $ 0.82 Ana: https://www.dividendmax.com/united-states/nasdaq/technology-hardware-and-equipment/apple-inc/dividends 7-Aug-20 Oil & Gas Producers Exxon Mobil Corp. NYSE XOM $ 46.18 Ana: https://finance.yahoo.com/quote/XOM/history?p=XOM 2,000 $ 92,360.00 $ 0.87 10-Feb-20 $ 0.87 Ana: https://www.dividendmax.com/united-states/nyse/oil-and-gas-producers/exxon-mobil-corp/dividends 12-May-20 Food Producers Kellogg Co. NYSE K $ 63.68 Ana: https://finance.yahoo.com/quote/k/history?p=k Ana: https://www.dividendmax.com/united-states/nyse/telecomms/atandt-inc/dividends Ana: https://www.dividendmax.com/united-states/nyse/pharmaceuticals-and-biotechnology/bristol-myers-squibb/dividends Ana: https://www.dividendmax.com/united-states/nasdaq/technology-hardware-and-equipment/apple-inc/dividends Ana: https://www.dividendmax.com/united-states/nyse/oil-and-gas-producers/exxon-mobil-corp/dividends 3,000 $ 191,040.00 $ 0.57 2-Mar-20 $ 0.57 Ana: https://www.dividendmax.com/united-states/nyse/food-producers/kellogg-co/dividends May 29 ,2020 Total Investment Held $ 955,420.00 Amount Held in Cash $ 44,580.00 Total Shares 15,000 Adjusted Beta = (2/3) x Reported Beta + (1/3) x 1.0 COMPANY REPORTED BETA ADJUSTED BETA Ana: https://guides.lib.uwo.ca/bloomberg/equities AT&T 0.67 Ana: https://finance.yahoo.com/quote/T/key-statistics/ 0.78 Bristol-Myers Squibb 0.72 Ana: https://finance.yahoo.com/quote/BMY/key-statistics/ 0.81 Apple, Inc. 1.17 Ana: https://finance.yahoo.com/quote/AAPL/key-statistics/ 1.11 Exxon Mobil Corp. 1.36 Ana: https://finance.yahoo.com/quote/XOM/key-statistics/ 1.24 Kellogg Co. 0.59 Ana: https://finance.yahoo.com/quote/k/key-statistics/ 0.73 Portfolio Beta COMPANY WEIGHT REPORTED BETA PORTFOLIO BETA AT&T 0.40 0.67 0.27 Bristol-Myers Squibb 0.20 0.72 0.14 Apple, Inc. 0.07 1.17 0.08 Exxon Mobil Corp. 0.13 1.36 0.18 Kellogg Co. 0.20 0.59 0.12 Total Portfolio Beta 0.79 Project Part 3. Track your portfolio and companies throughout the term , describe the stocks and their performance. Also discussed would there be any changes you have made in your portfolio. Keep up with the performance of your portfolio and major news about your stocks. Explain why you have requested any trade. I will expect you to regularly discuss your portfolio. This should be fun – and these are easy participation points! An easy way to set up your portfolio is to track it in Yahoo finance or Google finance, but you can also record the prices in a spreadsheet yourself – this will help later. Project Part 4, Final Project Submission: Assessment of your portfolio. For this Part, you will be making a report to your investment committee that discusses and summarizes the performance of your stock portfolio. Use closing prices as of Friday of Week 13, August 7, to calculate your returns. What is the final market value of your portfolio (including dividends received and added to non-interest earning cash)? If the final market value of your portfolio is less than $1,000,000, your portfolio lost money. Provide a graph of the daily stock prices (high, low, and closing) for each of your stocks. Include the volume on each graph, with the scale shown on the right side of the graph. Be sure to label the graphs! Provide a graph of the value of your portfolio and the value of the closing S&P 500 if $1,000,000 were invested in that initially. This is the normalized value. By normalized, you have scaled the S&P 500 closing prices so that its price on the first day ($1,000,000) is the same as the portfolio’s closing price on that first day. In the final section of your report, recommend for or against the inclusion of each of these stocks in the portfolio and defend your recommendation. Use the information you have obtained in Part 1 Deliverable 2 to support your argument. Calculations: Use the closing price of your stocks on Friday of Week 13, August 7, to calculate your returns. 1. Report the “purchase” and “sale” price of your stocks from the beginning and end of the semester along with any dividends you might have received. Calculate the buy-and-hold return of each stock [(MVend – MVbeginning + DIV) / MVbeginning] and the buy-and-hold return on your portfolio. 2. Determine the final market value of your portfolio (including dividends received). If the final market value of your portfolio is less than $1,000,000, your investment lost money. 3. Calculate the market value of a. Your portfolio for each day (including cash). I suggest that you do this by adding up the daily closing market values of your assets held and the cash you hold, including the total dividends received up to date. b. The S&P 500 index portfolio over this same period assuming you keep the same amount in cash. We are using the S&P 500 index as our proxy for the market. 4. Plot the daily market value of your portfolio and the daily market value of the S&P 500 using your calculations in #3. 5. Using the market values you calculated in #3, calculate the daily returns (percent) for a. your portfolio b. The S&P 500 index portfolio. 6. Using your calculations in #5, calculate a. The average daily return and the standard deviation of daily returns for both the S&P 500 index and your portfolio. b. your portfolio’s beta by calculating the covariance of your portfolio’s daily returns with the S&P 500’s daily returns and dividing that by the variance of the S&P 500. Write-up: Assume that you are preparing a relatively short report (maximum of 10 pages double- spaced) for your investment committee. You will be graded on the quality of your writing as well as the quality of your analysis. Do not simply answer the following questions – this should be financial report! These questions are intended to provide guidance. 1. Introduction 2. Comment on the individual and portfolio returns and on any information/events (market- wide or firm-specific) that may have contributed to the performance of your stocks. Describe and explain any trades you made. (Suggested length: a short, concise paragraph for each stock). 3. From your calculations, if you held the S&P 500 instead of your stocks, how much money would you have ended up with? Would you have been better or worse off to hold the index? Analyze the reasons for any differences. 4. Based on your calculations for standard deviation and beta, how risky was your portfolio compared to the index? Again, analyze the causes of the differences. 5. Finally, what are your plans going forward? That is, if this class continued and you had the chance to alter your portfolio holdings now, would you choose to sell any of your stocks or would you want to keep holding them? What will you tell the investment committee? Be explicit. Deliverables: 1. Your report (8 - 10 pages double-spaced, 12 pt. font) plus graphs. 2. Spreadsheet of returns and calculations, and market value plot – 2-pages maximum – make it neat and readable. Project Part 1 Initial Selection of Stocks Stock Analysis Initial Selection of Stocks For this project, a total of $955,420 was invested to five different stocks from five different industries (telecommunications, pharmaceutical and biotechnology, technology hardware and equipment, oil and gas, and lastly, food industry). Each of the company has at least $10 billion in market capitalization. Moreover, all the companies pay dividends to its investors. The stocks were purchased on Friday, May 8 and there is no short sales, fractional sales or margin trades made since then. The spreadsheet for this project shows the five stocks, stock exchanges, stock symbols, closing prices, number of shares bought, total value of investments and the dividends paid by each company. The following are the analysis of each stocks: AT&T, Inc. AT&T, Inc. is an American telecommunication company. AT&T is founded by the Bell Telephone Company. One main reason why this company was chosen is because AT&T is the largest telecommunications company worldwide. With a mission to inspire human progress through the power of communication and entertainment, AT&T continues to explore innovative ways to reinvent itself. The company offers mobile telephone services, fixed telephone services and entertainment video services. Recently, the company took a big step by adding WarnerMedia with a goal of reshaping the world of technology, media and telecommunications. As of May, the company has a total market capitalization of $207.52 B. Another reason why I chose to invest in this company is because AT&T has a high dividend yield. Currently, it has a dividend yield of 5.3%. Some of AT&T competitors include Orange Business Service, BT Group, SingTel, Verizon, T-Mobile, Spectrum, Cox Communications, Cricket Wireless, RCN and Comcast. The competition continues to grow but AT&T has surely adapted to previous changes in the industry and has the staying power to remain at the top. The reported beta of AT&T is 0.67. The adjusted beta is calculated using the formula: (2/3) x reported beta + (1/3) * 1.0. The adjusted beta is 0.78. Since the beta of the company is less than 1, it means that the security price tends to be less volatile than the market. This means that the stocks of AT&T can be considered less risky. Bristol-Myers Squibb Company Bristol-Myers Squibb Company is an global biopharmaceutical company headquartered at New York City. The company was founded in 1858. Since then, Bristol-Myers Squibb Company made it a mission to bring patients better health solutions. Bristol-Myers Squibb Company manufactures prescription and pharmaceutical biologics. The main reason why I chose to invest at Bristol-Myers Squibb Company is because of its current drug portfolio. Two of Bristol-Myers Squibb Company’s products (Eliquis and Opdivo) take in almost $2 B each quarter. Analysts also expect an earnings growth of 15% annually over the next five years. Considerably, Bristol-Myers Squibb Company also has a favourable 3.4% as its dividend yield. It has 21 companies in its portfolio and according to macrotrends.com, it has a market cap of $143.34 B. Bristol-Myers Squibb Company’s top competitors include Merck, Roche, Gilead, Pfizer, Amgen, GSK, Astra Zeneca, Eli Lilly, Novartis, and AbbVie. Its drug portfolio and pipeline are its competitive edge against these competitors. The reported beta of Bristol-Myers Squibb is 0.72. The adjusted beta is calculated using the formula: (2/3) x reported beta + (1/3) * 1.0. The adjusted beta is 0.81. Since the beta of the company is less than 1, it means that the security price tends to be less volatile than the market. This means that the stocks of Bristol-Myers Squibb Company can be considered less risky. Apple, Inc. Apple is a multinational technology company. One of the Big Five, Apple manufactures and sells consumer electronic products, accessories, software and services. I chose to invest to this company because of the popularity of its products. The brand that Apple build continues to add to its value. Apple’s well-known products include iPhone, iPad, iMac, iPod, Apple Watch, Apple TV, macOS, iOS, iPadOS and iTunes to name a few. Apple’s top competitors include Microsoft, Dell, Samsung, Lenovo, HP, Sony, Asus, Google, Huawei and Philips. Apple is a well-known company worldwide. It has a market cap value of $1000 B. Apple utilizes not only its product but also its marketing strategies to remain at the top. The reported beta of Apple is 1.17. The adjusted beta is calculated using the formula: (2/3) x reported beta + (1/3) * 1.0. The adjusted beta is 1.11. Since the beta of the company is more than 1, it means that the security price tends to be more volatile than the market. This means that the stocks of Apple can be considered more risky. Exxon Mobil Corp Exxon Mobil Corp. is an American multinational oil and gas corporation. Exxon Mobil market fuels and lubricants under four brands namely Esso, Exxon, Mobil and ExxonMobil Chemical. I invested at Exxon Mobil because it is one of the world’s largest publicly traded energy providers and chemical manufacturers. Exxon Mobil has a market capitalization of $186.55 B. Exxon Mobil’s top competitors include Chevron, Shell, Total, BP, Eni, ConocoPhillips, Valero, Occidental, Marathon Oil and LukOil. As one of the biggest oil companies worldwide, Exxon Mobil continues to achieve both outstanding financial and operating results. The reported beta of Exxon Mobil is 1.36. The adjusted beta is calculated using the formula: (2/3) x reported beta + (1/3) * 1.0. The adjusted beta is 1.24. Since the beta of the company is more than 1, it means that the security price tends to be more volatile than the market. This means that the stocks of Exxon Mobil can be considered more risky. Kellogg Co. Kellogg Co. is an American multinational food manufacturing company. Kellogg’s manufactures and distributes cookies, cereal bars, convenience foods, savory snacks and beverages. Kellogg’s top competitors include General Mills, Mondelez International, Kraft Heinz, Smucker’s Ingredion, Quaker Oats, Nestle, Conagra Brands, Tyson Foods and Hershey. The market capitalization of Kellogg amounts to $21.77 B and has a 3.2% dividend yield. Additionally, what makes this company appealing is because it is projecting a 2.3% organic sales growth and 6% operating profit growth in 2020. The reported beta of Kellogg Co. is 0.59. The adjusted beta is calculated using the formula: (2/3) x reported beta + (1/3) * 1.0. The adjusted beta is 0.73. Since the beta of the company is less than 1, it means that the security price tends to be less volatile than the market. This means that the stocks of Kellogg Co. can be considered less risky. Total Portfolio Beta The beta of my initial portfolio is 0.79. This means that overall, my portfolio tends to be less volatile. The total amount held in cash is $44,580. Sources AT&T, Inc. 1) https://about.att.com/pages/corporate_profile 2) https://www.fool.com/investing/2020/01/24/the-4-biggest-dividend-payers-in-the-stock-market.aspx 3) https://www.owler.com/company/att Bristol-Myers Squibb Company 1) https://www.bms.com/about-us/our-company.html 2) https://money.usnews.com/investing/dividends/slideshows/best-dividend-stocks-to-buy-this-year?slide=2 3) https://www.owler.com/company/bms Apple 1) https://www.owler.com/company/apple 2) www.apple.com Exxon Mobil 1) https://www.owler.com/company/exxonmobil 2) https://corporate.exxonmobil.com/Company/Careers 3) https://corporate.exxonmobil.com/Company/Who-we-are Kellogs Co. 1) https://www.owler.com/company/kelloggs 2) https://money.usnews.com/investing/stock-market-news/slideshows/top-food-and-beverage-stocks-to-buy?slide=4 Running head: VALUATION OF PORTFOLIO AND COMPANIES 1 VALUATION OF PORTFOLIO AND COMPANIES 2 Valuation of Portfolio and Companies Valuation of Portfolio and Companies Valuation The dividend growth model (DDM) calculates the value of any business. It takes into account the dividends per share (DPS), rate of return, and the growth rate. One finds the growth rate by computing the difference between the dividends paid in the years 2018 and 2019. Using a rate of return of 8% gives various stock values. AT&T had an intrinsic value of 34, Apple Inc. had 122, and Kellogg had 37, Exxon 183, whereas Bristol-Myers had 30 dollars. One notes that AT&T had a market price per share (MPS) of 30.08; Apple had 364, Kellogg 66, Exxon 44, and Bristol 59 dollars. Such results show that only AT&T and Exxon Mobil are undervalued. An investor purchasing these companies is likely to take advantage of capital gains.   AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Dividends 2.04 3.08 2.28 3.48 1.64 Rate 8% 8% 8% 8% 8% Growth 2.00% 5.48% 1.79% 6.10% 2.50% Value 34 122 37 183 30 (Apple Inc. (AAPL) Stock Historical Prices & Data, n.d.; AT&T Inc. (T) Stock Historical Prices & Data, n.d.; Exxon Mobil Corporation, n.d., and Kellogg Company, n.d.) Rate of return of 12% Changing the rate of return varies the intrinsic values of the shares. One notes that AT&T has a value of 20.4, Apple 47, Kellogg 22, and Exxon Mobil 59 while Bristol has a value of 17 dollars. Such results show that all the stocks are overvalued. A prudent investor would not purchase any of the shares from these companies. AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Dividends 2.04 3.08 2.28 3.48 1.64 Rate 12% 12% 12% 12% 12% Growth 2.00% 5.48% 1.79% 6.10% 2.50% Value 20.4 47 22 59 17 Market Price per Share   AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb MPS 30.08 364 66 44 59 Capital Asset Pricing Model (CAPM) CAPM is a technique used to find the required rate of return. It takes into account the risk-free rate, the beta value, the market rate, and the risk premium (Capital Asset Pricing Model, 2015). Rate of return is obtained as the sum of the risk-free rate and the product of beta and the risk premiums. CAPM Returns       COMPANY WEIGHT REPORTED BETA PORTFOLIO BETA Market return Risk-free rate Rate of return AT&T 0.40 0.67 0.27 8% 0.66% 2.63% Bristol-Myers Squibb 0.20 0.72 0.14 8% 0.66% 1.72% Apple, Inc. 0.07 1.17 0.08 8% 0.66% 1.23% Exxon Mobil Corp. 0.13 1.36 0.18 8% 0.66% 1.99% Kellogg Co. 0.20 0.59 0.12 8% 0.66% 1.53% Total Portfolio Beta     0.79 8% 0.66% 6.45% APPLE INC Turnover ratios measure the way a company uses its assets to generate sales. The inventory turnover, the days of inventory, account receivable turnover, and the days of receivables fall in this category. One notes that Apple Inc. had an inventory turnover of 41.39 in 2018 and 39.40 in 2019. Such answers result in inventory being sold in nine days. It also had an account receivable turnover of 11.45 in 2018 and 11.35 in 2019, whereas days of receivables were 31 in 2018 and 32 in 2019. Liquidity ratios evaluate the ability of a business to meet its short term obligations. Apple Inc. had a current ratio of 1.13 in 2018 and 1.54 in 2019. It also had a quick ratio of 1.10 in 2018 and 1.50 in 2019. These results show that the business is quite liquid and can pay its current liability. Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 161,782 163,756 Current assets 162,819 131,339 Inventory 4,106 3,956 Current liability 105,718 115,929 Inventory Turnover 39.40 41.39 Ratio 1.54 1.13 Days of inventory     Quick ratio     Days 360 360 Current assets 158,713 127,383 Inventory turnover 39.40136 41.39434 Current liability 105,718 115,929 Days of inventory 9 9 Ratio 1.50 1.10 Accounts receivable Turnover 2019 2018 Sales 260,174 265,595 Account receivable 22,926 23,186 Turnover 11.35 11.45 Days of receivables     Days 360 360 receivable turnover 11.35 11.45 Days of receivables 32 31 (SEC Filings, n.d.). Leverage and profitability ratios Leverage gauges the level of borrowings in a business. They include both the debt to equity and debt to assets ratio. Apple Inc. had a debt to equity rate of 0.96 in 2018 and 1.13 in 2019. It also had a debt to assets ratio of 0.28 and .30 in the same period. Such results show that the business is keen on taking on more borrowings. Such a move makes the company quite risky. Besides, one may evaluate the profitability ratios. The firm had a return on equity (ROE) of 0.56 in 2018 and 0.61 in 2019. It also had a net margin of 22% and 21% in the same period. Such results show that the company is quite profitable. Debt to equity     Return on equity 2019 2018 Debt 102,067 102,519 Net income 55,256 59,531 Equity 90,488 107,147 Equity 90,488 107,147 Debt to equity ratio 1.13 0.96 ROE 0.61 0.56 Debt to total assets     Net profit margin     Debt 102,067 102519 Net profit 55,256 59531 Total assets 338,516 365,725 Sales 260,174 265,595 Ratio 0.30 0.28 Ratio 0.21 0.22 (SEC Filings, n.d.). AT&T Both the turnover and current ratios should be evaluated. One notes that AT&T had an inventory turnover of 2.63 in 2018 and2.71 in 2019. Such answers result in inventory being sold in 137 and 133 days in 2018 and 2019, respectively. It also had an account receivable turnover of 6.45 in 2018 and 8.00 in 2019, and days of receivables were 56 in 2018 and 45 in 2019. Liquidity ratios evaluate the ability of a business to meet its short term obligations. Apple Inc. had a current ratio of 0.80 in 2018 and 0.79 in 2019. It also had a quick ratio of 0.52 in 2018 and 0.53 in 2019. AT&T is quite illiquid and may have difficulties in meeting its short term obligations. Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 49,785 46,513 Current assets 54,761 51,427 Inventory 18,364 17,704 Current liability 68,911 64,420 Inventory Turnover 2.71 2.63 Ratio 0.79 0.80 Days of inventory     Quick ratio     Days 360 360 Current assets 36,397 33,723 Inventory turnover 2.711011 2.627259 Current liability 68,911 64,420 Days of inventory 133 137 Ratio 0.53 0.52 Accounts receivable Turnover 2019 2018 Sales 181,193 170,756 Account receivable 22,636 26,472 Turnover 8.00 6.45 Days of receivable     Days 360 360 Inventory turnover 8.00 6.45 Days of receivable 45 56 (SEC Filings, n.d.). Leverage and liquidity AT&T shareholders would be keen on establishing the levels of borrowed funds and the returns generated by a business. The company had a debt to equity of 0.05 in 2018 and 0.06 in 2019. It also had a debt to total assets of 0.02 in both years. Besides, it had an ROE of 10% in 2018 and 7% in 2019. It had a net margin of 11% and 8% in both years. One notes that the firm has maintained deficient debt levels, whereas the profits have been on a downward trend. Debt to equity 2019 2018 Return on equity 2019 2018 Debt 11,838 10,255 Net income 13,900 19,370 Equity 201,934 193,884 Equity 201,934 193,884 Debt to equity ratio 0.06 0.05 ROE 0.07 0.10 Debt to total assets     Net profit margin     Debt 11,838 10255 Net profit 13,900 19,370 Total assets 551,669 531,864 Sales 181,193 170,756 Ratio 0.02 0.02 Ratio 0.08 0.11 (SEC Filings, n.d.). EXXON Exxon had an inventory turnover of 10.17 in 2018 and 9.75 in 2019. It had sold its inventory in 35 days and 37 in the same period. One notes that the receivable turnover was 11.75 and 9.82 in the same period. It collected its credit sales in 31 days in 2018 and 37 in 2019. Liquidity rates appear attractive to any investor. Exxon had a current ratio of 0.84 in 2018 and 0.78 in 2019. It also had a quick ratio of 0.51 in 2018 and 0.49 in 2019. Such results in liquidity rates below a value of one and indicates that the business may have hard times paying its suppliers and other short term liabilities. Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 180,627 192,854 Current assets 50,052 47,973 Inventory 18,528 18,958 Current liability 63,989 57,138 Inventory Turnover 9.75 10.17 Ratio 0.78 0.84 Days of inventory     Quick ratio     Days 360 360 Current assets 31,524 29,015 Inventory turnover 9.748867 10.1727 Current liability 63,989 57,138 Days of inventory 37 35 Ratio 0.49 0.51 Accounts receivable Turnover 2019 2018 Sales 264,938 290,212 Account receivable 26,966 24,701 Turnover 9.82 11.75 Days of receivable     Days 360 360 Inventory turnover 9.82 11.75 Days of inventory 37 31 (SEC Filings, n.d.). Debt and profitability Exxon had a debt to assets of 0.11 in 2018 and 0.13 in 2019. It also had a dent to equity of 0.19 and 0.24 in the same period. These results show business with a relatively low amount of financial obligations. Such companies bear minimal interest costs and expenses. Besides, it is vital to gauge the % of the profitability of the firm. One notes that Exxon had an ROE of 10% in 2018 and 7% in 2019. It also had a net profit of 7% and 5% in the same period. Debt to equity 2019 2018 Return on equity 2019 2018 Debt 46,920 37,796 Net income 14,340 20,840 Equity 198,938 198,528 Equity 198,938 198,528 Debt to equity ratio 0.24 0.19 ROE 0.07 0.10 Debt to total assets     Net profit margin     Debt 46,920 37,796 Net profit 14,340 20,840 Total assets 362,597 346,196 Sales 264,938 290,212 Ratio 0.13 0.11 Ratio 0.05 0.07 (SEC Filings, n.d.). KELLOG Efficiency ratios gauge the manner a company utilizes its assets. Kellogg had an inventory turnover of 6.63 and 7.50 in 2018 and 2019, respectively. One notes that the rate has improved, showing that the business is selling its stock at a faster pace. It also had accounts receivable turnover of 9.85 in 2018 and 8.62 in 2019. Besides, the current and quick ratio shows the performance of any business. One notes that the company had a current ratio of 0.70 in 2018 and 0.72 in 2019. It also had a quick ratio of 0.40 in 2018 and 0.46 in 2019. Such results show that the business will have a hard time meeting its short term obligations. An investor may avoid investing in such a company. Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 9,197 8,821 Current assets 3,431 3,157 Inventory 1,226 1,330 Current liability 4,778 4,529 Inventory Turnover 7.50 6.63 Ratio 0.72 0.70 Days of inventory     Quick ratio     Days 360 360 Current assets 2,205 1,827 Inventory turnover 7.501631 6.632331 Current liability 4,778 4,529 Days of inventory 48 54 Ratio 0.46 0.40 Accounts receivable Turnover 2019 2018 Sales 13,578 13,547 Account receivable 1,576 1,375 Turnover 8.62 9.85 Days of inventory     Days 360 360 Inventory turnover 8.62 9.85 Days of inventory 42 37 (SEC Filings, n.d.). Debt and profitability ratios Kellog had an ROE of 42% and 29% in 2018 and 2019, respectively. It also had a net margin of 10% in 2018 and 7% in 2019. One notes that there was a decline in the profits from one year to the other. As a result, such stock may not appear attractive to any investor. Besides, it has a debt to equity of 2.65 in 2018 and 2.20 in 2019. It also had a debt to assets of 0.47 in 2018 and 0.42 in 2019. An investor notes that the company has maintained a relatively higher level of debt. This situation makes the firm quite risky. Debt to equity 2019 2018 Return on equity 2019 2018 Debt 7,302 8,383 Net income 960 1,336 Equity 3,314 3,159 Equity 3,314 3,159 Debt to equity ratio 2.20 2.65 ROE 29% 42% Debt to total assets     Net profit margin     Debt 7,302 8,383 Net profit 960 1,336 Total assets 17,564 17,780 Sales 13,578 13,547 Ratio 0.42 0.47 Ratio 7% 10% (SEC Filings, n.d.). BRISTOL Bristol had an inventory turnover of 1.19 in 2018 and 1.88 in 2019. As a result, it had days of inventory of 302 and 191 in the same period. Such results show that the company is replenishing stock at a faster rate. It also had an account receivable turnover of 3.93 in 2018 and 3.40 in 2019. Its credit sales were outstanding for 92 days in 2018 and 106 in 2019. Besides, one should evaluate the liquidity ratios. Bristol had a current ratio of 1.66 in 2018 and 1.60 in 2019. It also had a quick ratio of 1.15 in 2018 and 1.37 in 2019. This performance indicates that the firm can meet its short term obligations when they fall due. Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 8,078 6,467 Current assets 29,354 17,716 Inventory 4,293 5,427 Current liability 18,304 10,654 Inventory Turnover 1.88 1.19 Ratio 1.60 1.66 Days of inventory     Quick ratio     Days 360 360 Current assets 25,061 12,289 Inventory turnover 1.881668 1.191634 Current liability 18,304 10,654 Days of inventory 191 302 Ratio 1.37 1.15 Accounts receivable Turnover 2019 2019 Sales 26,145 22,561 Account receivable 7,685 5,747 Turnover 3.40 3.93 Days of inventory     Days 360 360 Inventory turnover 3.40 3.93 Days of inventory 106 92 Leverage and profitability ratios Bristol had a debt to equity ratio of 0.52 in 2018 and 0.9 in 2019. It also had a debt to assets of 0.21 and 0.36 in the same period. One notes that there was an increase in its leveraged position. It is essential to make sure the borrowings are kept at a sustainable level. Besides, it had an ROE of 35% in 2018 and 7% in 2019 and a net margin of 22% and 13% in the same period. Debt to equity 2019 2018 Return on equity 2019 2018 Debt 46,733 7,349 Net income 3,439 4,920 Equity 51,698 14,127 Equity 51,698 14,127 Debt to equity ratio 90% 52% ROE 7% 35% Debt to total assets     Net profit margin     Debt 46,733 7,349 Net profit 3,439 4,920 Total assets 129,944 34,986 Sales 26,145 22,561 Ratio 36% 21% Ratio 13% 22% (SEC Filings, n.d.). References Apple Inc. (AAPL) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/AAPL/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d AT&T Inc. (T) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved from finance.yahoo.com website: https://finance.yahoo.com/quote/T/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d BMY SEC Filings - Bristol Myers Squibb. (n.d.). Retrieved July 4, 2020, from www.bms.com website: https://www.bms.com/investors/financial-reporting/sec-filings.html Exxon Mobil Corporation (XOM) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/XOM/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d Kellogg Company (K) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/K/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d SEC Filings | Exxon Mobil Corporation. (n.d.). Retrieved July 4, 2020, from ir.exxonmobil.com website: https://ir.exxonmobil.com/sec-filings SEC Filings. (n.d.). Retrieved July 4, 2020, from investors.att.com website: https://investors.att.com/financial-reports/sec-filings SEC Filings - Kellogg Company. (n.d.). Retrieved July 4, 2020, from investor.kelloggs.com website: https://investor.kelloggs.com/financials/sec-filings/default.aspx What is the CAPM - Capital Asset Pricing Model - Formula, Example. (2015). Retrieved from Corporate Finance Institute website: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-capm-formula/ ‌ Running head: VALUATION OF PORTFOLIO AND COMPANIES 1 Valuation of Portfolio and Companies AAPL IS Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, September 29, September 30, 2019 2018 2017 Net sales:    Products 213,883 225,847 196,534    Services 46,291 39,748 32,700 Total net sales 260,174 265,595 229,234 Cost of sales:    Products 144,996 148,164 126,337    Services 16,786 15,592 14,711 Total cost of sales 161,782 163,756 141,048 Gross margin 98,392 101,839 88,186 Operating expenses: Research and development 16,217 14,236 11,581 Selling, general and administrative 18,245 16,705 15,261 Total operating expenses 34,462 30,941 26,842 Operating income 63,930 70,898 61,344 Other income/(expense), net 1,807 2,005 2,745 Income before provision for income taxes 65,737 72,903 64,089 Provision for income taxes 10,481 13,372 15,738 Net income 55,256 59,531 48,351 Earnings per share: Basic 11.97 12.01 9.27 Diluted 11.89 11.91 9.21 Shares used in computing earnings per share: Basic 4,617,834 4,955,377 5,217,242 Diluted 4,648,913 5,000,109 5,251,692 AAPL BS Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, September 29, 2019 2018 ASSETS: Current assets: Cash and cash equivalents 48,844 25,913 Marketable securities 51,713 40,388 Accounts receivable, net 22,926 23,186 Inventories 4,106 3,956 Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 Total current assets 162,819 131,339 Non-current assets: Marketable securities 105,341 170,799 Property, plant and equipment, net 37,378 41,304 Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 Total assets 338,516 365,725 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable 46,236 55,888 Other current liabilities 37,720 33,327 Deferred revenue 5,522 5,966 Commercial paper 5,980 11,964 Term debt 10,260 8,784 Total current liabilities 105,718 115,929 Non-current liabilities: Term debt 91,807 93,735 Other non-current liabilities 50,503 48,914 Total non-current liabilities 142,310 142,649 Total liabilities 248,028 258,578 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201 Retained earnings 45,898 70,400 Accumulated other comprehensive income/(loss) -584 -3,454 Total shareholders’ equity 90,488 107,147 Total liabilities and shareholders’ equity 338,516 365,725 AAPL Ratio Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 161,782 163,756 Current assets 162,819 131,339 Inventory 4,106 3,956 Current liability 105,718 115,929 Inventory Turnover 39.40 41.39 Ratio 1.54 1.13 Days of inventory Quick ratio Days 360 360 Current assets 158,713 127,383 Inventory turnover 39.4013638578 41.3943377149 Current liability 105,718 115,929 Days of inventory 9 9 Ratio 1.50 1.10 Accounts receivable Turnover 2019 2018 Sales 260,174 265,595 Account receivable 22,926 23,186 Turnover 11.35 11.45 Days of inventory Days 360 360 Inventory turnover 11.35 11.45 Days of inventory 32 31 Debt to equity Return on equity 2019 2018 Debt 102,067 102,519 Net income 55,256 59,531 Equity 90,488 107,147 Equity 90,488 107,147 Debt to equity ratio 1.13 0.96 Debt to equity ratio 0.61 0.56 Debt to total assets Net profit margin Debt 102,067 102519 Net profit 55,256 59531 Total assets 338,516 365,725 Sales 260,174 265,595 Ratio 0.30 0.28 Ratio 0.21 0.22 AT&T IS Consolidated Statements of Income 2019 2018 2017 Operating Revenues Service $ 163,499 152,345 145,597 Equipment 17,694 18,411 14,949 Total operating revenues 181,193 170,756 160,546 Operating Expenses Cost of revenues Equipment 18,653 19,786 18,709 Broadcast, programming and operations 31,132 26,727 21,159 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 34,356 32,906 37,942 Selling, general and administrative 39,422 36,765 35,465 Asset abandonments and impairments 1,458 46 2,914 Depreciation and amortization 28,217 28,430 24,387 Total operating expenses 153,238 144,660 140,576 Operating Income 27,955 26,096 19,970 Other Income (Expense) Interest expense -8,422 -7,957 -6,300 Equity in net income (loss) of affiliates 6 -48 -128 Other income (expense) – net -1,071 6,782 1,597 Total other income (expense) -9,487 -1,223 -4,831 Income Before Income Taxes 18,468 24,873 15,139 Income tax (benefit) expense 3,493 4,920 -14,708 Net Income 14,975 19,953 29,847 Less: Net Income Attributable to Noncontrolling Interest -1,072 -583 -397 Net Income Attributable to AT&T $ 13,903 19,370 29,450 Less: Preferred Stock Dividends -3 - - Net Income Attributable to Common Stock $ 13,900 19,370 29,450 Basic Earnings Per Share Attributable to Common Stock $ 1.9 2.85 4.77 Diluted Earnings Per Share Attributable to Common Stock $ 1.89 2.85 4.76 The accompanying notes are an integral part of the consolidated financial statements. AT&T BS Consolidated Balance Sheets December 31, 2019 2018 Assets Current Assets Cash and cash equivalents 12,130 5,204 Accounts receivable - net of allowances for doubtful accounts of $1,235 and $907 22,636 26,472 Prepaid expenses 1,631 2,047 Other current assets 18,364 17,704 Total current assets 54,761 51,427 Noncurrent inventories and theatrical film and television production costs 12,434 7,713 Property, Plant and Equipment – Net 130,128 131,473 Goodwill 146,241 146,370 Licenses – Net 97,907 96,144 Trademarks and Trade Names – Net 23,567 24,345 Distribution Networks – Net 15,345 17,069 Other Intangible Assets – Net 20,798 26,269 Investments in and Advances to Equity Affiliates 3,695 6,245 Operating lease right-of-use assets 24,039 - Other Assets 22,754 24,809 Total Assets 551,669 531,864 Liabilities and Stockholders’ Equity Current Liabilities Debt maturing within one year 11,838 10,255 Accounts payable and accrued liabilities 45,956 43,184 Advanced billings and customer deposits 6,124 5,948 Accrued taxes 1,212 1,179 Dividends payable 3,781 3,854 Total current liabilities 68,911 64,420 Long-Term Debt 151,309 166,250 Deferred Credits and Other Noncurrent Liabilities Deferred income taxes 59,502 57,859 Postemployment benefit obligation 18,788 19,218 Operating lease liabilities 21,804 - Other noncurrent liabilities 29,421 30,233 Total deferred credits and other noncurrent liabilities 129,515 107,310 Stockholders’ Equity Preferred stock ($1 par value, 5% cumulative, 10,000,000 authorized, 48,000 shares issued and outstanding at December 31, 2019 and 0 issued and outstanding at December 31, 2018) - - Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2019 and December 31, 2018: issued 7,620,748,598 at December 31, 2019 and at December 31, 2018) 7,621 7,621 Additional paid-in capital 126,279 125,525 Retained earnings 57,936 58,753 Treasury stock (366,193,458 at December 31, 2019 and 339,120,073 at December 31, 2018, at cost) -13,085 -12,059 Accumulated other comprehensive income 5,470 4,249 Noncontrolling interest 17,713 9,795 Total stockholders’ equity 201,934 193,884 Total Liabilities and Stockholders’ Equity 551,669 531,864 The accompanying notes are an integral part of the consolidated financial statements. AT&T Ratio Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 49,785 46,513 Current assets 54,761 51,427 Inventory 18,364 17,704 Current liability 68,911 64,420 Inventory Turnover 2.71 2.63 Ratio 0.79 0.80 Days of inventory Quick ratio Days 360 360 Current assets 36,397 33,723 Inventory turnover 2.7110106731 2.6272593764 Current liability 68,911 64,420 Days of inventory 133 137 Ratio 0.53 0.52 Accounts receivable Turnover 2019 2018 Sales 181,193 170,756 Account receivable 22,636 26,472 Turnover 8.00 6.45 Days of inventory Days 360 360 Inventory turnover 8.00 6.45 Days of inventory 45 56 Debt to equity 2019 2018 Return on equity 2019 2018 Debt 11,838 10,255 Net income 13,900 19,370 Equity 201,934 193,884 Equity 201,934 193,884 Debt to equity ratio 0.06 0.05 Debt to equity ratio 0.07 0.10 Debt to total assets Net profit margin Debt 11,838 10255 Net profit 13,900 19,370 Total assets 551,669 531,864 Sales 181,193 170,756 Ratio 0.02 0.02 Ratio 0.08 0.11 Exxon IS CONSOLIDATED STATEMENT OF INCOME 2019 2018 2017 (millions of dollars) Revenues and other income Sales and other operating revenue 255,583 279,332 237,162 Income from equity affiliates 5,441 7,355 5,380 Other income 3,914 3,525 1,821 Total revenues and other income 264,938 290,212 244,363 Costs and other deductions Crude oil and product purchases 143,801 156,172 128,217 Production and manufacturing expenses 36,826 36,682 32,690 Selling, general and administrative expenses 11,398 11,480 10,649 Depreciation and depletion 18,998 18,745 19,893 Exploration expenses, including dry holes 1,269 1,466 1,790 Non-service pension and postretirement benefit expense 1,235 1,285 1,745 Interest expense 830 766 601 Other taxes and duties 30,525 32,663 30,104 Total costs and other deductions 244,882 259,259 225,689 Income before income taxes 20,056 30,953 18,674 Income taxes 5,282 9,532 -1,174 Net income including noncontrolling interests 14,774 21,421 19,848 Net income attributable to noncontrolling interests 434 581 138 Net income attributable to ExxonMobil 14,340 20,840 19,710 Earnings per common share (dollars) 3.36 4.88 4.63 Earnings per common share - assuming dilution (dollars) 3.36 4.88 4.63 Exxon BS CONSOLIDATED BALANCE SHEET Dec. 31 Dec. 31 2019 2018 (millions of dollars) Assets Current assets Cash and cash equivalents 3,089 3,042 Notes and accounts receivable, less estimated doubtful amounts 26,966 24,701 Inventories Crude oil, products and merchandise 14,010 14,803 Materials and supplies 4,518 4,155 Other current assets 1,469 1,272 Total current assets 50,052 47,973 Investments, advances and long-term receivables 43,164 40,790 Property, plant and equipment, at cost, less accumulated depreciation and depletion 253,018 247,101 Other assets, including intangibles, net 16,363 10,332 Total assets 362,597 346,196 Liabilities Current liabilities Notes and loans payable 20,578 17,258 Accounts payable and accrued liabilities 41,831 37,268 Income taxes payable 1,580 2,612 Total current liabilities 63,989 57,138 Long-term debt 26,342 20,538 Postretirement benefits reserves 22,304 20,272 Deferred income tax liabilities 25,620 27,244 Long-term obligations to equity companies 3,988 4,382 Other long-term obligations 21,416 18,094 Total liabilities 163,659 147,668 Commitments and contingencies - - Equity Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) 15,637 15,258 Earnings reinvested 421,341 421,653 Accumulated other comprehensive income -19,493 -19,564 Common stock held in treasury (3,785 million shares in 2019 and 3,782 million shares in 2018) -225,835 -225,553 ExxonMobil share of equity 191,650 191,794 Noncontrolling interests 7,288 6,734 Total equity 198,938 198,528 Total liabilities and equity 362,597 346,196 Exxon Ratio Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 180,627 192,854 Current assets 50,052 47,973 Inventory 18,528 18,958 Current liability 63,989 57,138 Inventory Turnover 9.75 10.17 Ratio 0.78 0.84 Days of inventory Quick ratio Days 360 360 Current assets 31,524 29,015 Inventory turnover 9.7488665803 10.1726975419 Current liability 63,989 57,138 Days of inventory 37 35 Ratio 0.49 0.51 Accounts receivable Turnover 2019 2019 Sales 264,938 290,212 Account receivable 26,966 24,701 Turnover 9.82 11.75 Days of inventory Days 360 360 Inventory turnover 9.82 11.75 Days of inventory 37 31 Debt to equity 2019 2018 Return on equity 2019 2018 Debt 46,920 37,796 Net income 14,340 20,840 Equity 198,938 198,528 Equity 198,938 198,528 Debt to equity ratio 0.24 0.19 Debt to equity ratio 0.07 0.10 Debt to total assets Net profit margin Debt 46,920 37,796 Net profit 14,340 20,840 Total assets 362,597 346,196 Sales 264,938 290,212 Ratio 0.13 0.11 Ratio 0.05 0.07 Kellog IS CONSOLIDATED STATEMENT OF INCOME (millions, except per share data) 2019 2018 2017 Net sales 13,578 13,547 12,854 Cost of goods sold 9,197 8,821 8,155 Selling, general and administrative expense 2,980 3,020 3,312 Operating profit 1,401 1,706 1,387 Other income (expense), net 188 90 526 Income before income taxes 1,305 1,329 1,657 Income taxes 321 181 410 Earnings (loss) from unconsolidated entities -7 196 7 Net income 977 1,344 1,254 Net income (loss) attributable to noncontrolling interests 17 8 — Net income attributable to Kellogg Company 960 1,336 1,254 Per share amounts: Basic 2.81 3.85 3.61 Diluted 2.8 3.83 3.58 Kellog BS CONSOLIDATED BALANCE SHEET (millions, except share data) 2019 2018 Current assets Cash and cash equivalents 397 321 Accounts receivable, net 1,576 1,375 Inventories 1,226 1,330 Other current assets 232 131 Total current assets 3,431 3,157 Property, net 3,612 3,731 Operating lease right-of-use assets 541 — Goodwill 5,861 6,050 Other intangibles, net 2,576 3,361 Investment in unconsolidated entities 404 413 Other assets 1,139 1,068 Total assets 17,564 17,780 Current liabilities Current maturities of long-term debt 620 510 Notes payable 107 176 Accounts payable 2,387 2,427 Current operating lease liabilities 114 — Other current liabilities 1,550 1,416 Total current liabilities 4,778 4,529 Long-term debt 7,195 8,207 Operating lease liabilities 433 — Deferred income taxes 596 730 Pension liability 705 651 Other liabilities 543 504 Commitments and contingencies Equity Common stock, $.25 par value, 1,000,000,000 shares authorized 105 105 Issued: 420,829,201 shares in 2019 and 420,666,780 shares in 2018 Capital in excess of par value 921 895 Retained earnings 7,859 7,652 Treasury stock, at cost -4,690 -4,551 79,286,171 shares in 2019 and 76,801,314 shares in 2018 Accumulated other comprehensive income (loss) -1,448 -1,500 Total Kellogg Company equity 2,747 2,601 Noncontrolling interests 567 558 Total equity 3,314 3,159 Total liabilities and equity 17,564 17,780 Kellog ratio Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 9,197 8,821 Current assets 3,431 3,157 Inventory 1,226 1,330 Current liability 4,778 4,529 Inventory Turnover 7.50 6.63 Ratio 0.72 0.70 Days of inventory Quick ratio Days 360 360 Current assets 2,205 1,827 Inventory turnover 7.5016313214 6.6323308271 Current liability 4,778 4,529 Days of inventory 48 54 Ratio 0.46 0.40 Accounts receivable Turnover 2019 2019 Sales 13,578 13,547 Account receivable 1,576 1,375 Turnover 8.62 9.85 Days of inventory Days 360 360 Inventory turnover 8.62 9.85 Days of inventory 42 37 Debt to equity 2019 2018 Return on equity 2019 2018 Debt 7,302 8,383 Net income 960 1,336 Equity 3,314 3,159 Equity 3,314 3,159 Debt to equity ratio 2.20 2.65 Debt to equity ratio 29% 42% Debt to total assets Net profit margin Debt 7,302 8,383 Net profit 960 1,336 Total assets 17,564 17,780 Sales 13,578 13,547 Ratio 0.42 0.47 Ratio 7% 10% Bristol IS Year Ended December 31, EARNINGS 2019 2018 2017 Net product sales 25,174 21,581 19,258 Alliance and other revenues 971 980 1,518 Total Revenues 26,145 22,561 20,776 Cost of products sold(a) 8,078 6,467 6,014 Marketing, selling and administrative 4,871 4,551 4,751 Research and development 6,148 6,332 6,468 Amortization of acquired intangible assets 1,135 97 97 Other (income)/expense, net 938 -854 -1,685 Total Expenses 21,170 16,593 15,645 Earnings Before Income Taxes 4,975 5,968 5,131 Provision for Income Taxes 1,515 1,021 4,156 Net Earnings 3,460 4,947 975 Noncontrolling Interest 21 27 -32 Net Earnings Attributable to BMS 3,439 4,920 1,007 Earnings per Common Share Basic 2.02 3.01 0.61 Diluted 2.01 3.01 0.61 Bristol BS December 31, ASSETS 2019 2018 Current Assets: Cash and cash equivalents 12,346 6,911 Marketable debt securities 3,047 1,848 Receivables 7,685 5,747 Inventories 4,293 1,195 Other current assets 1,983 2,015 Total Current Assets 29,354 17,716 Property, plant and equipment 6,252 5,027 Goodwill 22,488 6,538 Other intangible assets 63,969 1,091 Deferred income taxes 510 815 Marketable debt securities 767 1,775 Other non-current assets 6,604 2,024 Total Assets 129,944 34,986 LIABILITIES Current Liabilities: Short-term debt obligations 3,346 1,703 Accounts payable 2,445 1,892 Other current liabilities 12,513 7,059 Total Current Liabilities 18,304 10,654 Deferred income taxes 6,454 19 Long-term debt 43,387 5,646 Other non-current liabilities 10,101 4,540 Total Liabilities 78,246 20,859 Commitments and contingencies EQUITY Bristol-Myers Squibb Company Shareholders’ Equity: Preferred stock, $2 convertible series, par value $1 per share: Authorized 10 million shares; issued and outstanding 3,568 in 2019 and 3,590 in 2018, liquidation value of $50 per share — — Common stock, par value of $0.10 per share: Authorized 4.5 billion shares; 2.9 billion issued in 2019 and 2.2 billion issued in 2018 292 221 Capital in excess of par value of stock 43,709 2,081 Accumulated other comprehensive loss -1,520 -2,762 Retained earnings 34,474 34,065 Less cost of treasury stock — 672 million common shares in 2019 and 576 million common shares in 2018 -25,357 -19,574 Total Bristol-Myers Squibb Company Shareholders' Equity 51,598 14,031 Noncontrolling interest 100 96 Total Equity 51,698 14,127 Total Liabilities and Equity 129,944 Bristol ratios Inventory Turnover 2019 2018 Current ratio 2019 2018 COGS 8,078 6,467 Current assets 29,354 17,716 Inventory 4,293 5,427 Current liability 18,304 10,654 Inventory Turnover 1.88 1.19 Ratio 1.60 1.66 Days of inventory Quick ratio Days 360 360 Current assets 25,061 12,289 Inventory turnover 1.8816678314 1.1916344205 Current liability 18,304 10,654 Days of inventory 191 302 Ratio 1.37 1.15 Accounts receivable Turnover 2019 2019 Sales 26,145 22,561 Account receivable 7,685 5,747 Turnover 3.40 3.93 Days of inventory Days 360 360 Inventory turnover 3.40 3.93 Days of inventory 106 92 Debt to equity 2019 2018 Return on equity 2019 2018 Debt 46,733 7,349 Net income 3,439 4,920 Equity 51,698 14,127 Equity 51,698 14,127 Debt to equity ratio 90% 52% ROE 7% 35% Debt to total assets Net profit margin Debt 46,733 7,349 Net profit 3,439 4,920 Total assets 129,944 34,986 Sales 26,145 22,561 Ratio 36% 21% Ratio 13% 22% Valuation AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Date Dividends Growth Dividends Growth Dividends Growth Dividends Growth Dividends Growth 2015 1.88 2.08 2 2.92 1.48 2016 1.92 2.28 2.08 3 1.52 2017 1.96 2.52 2.16 3.08 1.56 2018 2 2.92 2.24 3.28 1.6 2019 2.04 2.00% 3.08 5.48% 2.28 1.79% 3.48 6.10% 1.64 2.50% AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Dividends 2.04 3.08 2.28 3.48 1.64 Rate 8% 8% 8% 8% 8% Growth 2.00% 5.48% 1.79% 6.10% 2.50% Value 34 122 37 183 30 AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Dividends 2.04 3.08 2.28 3.48 1.64 Rate 12% 12% 12% 12% 12% Growth 2.00% 5.48% 1.79% 6.10% 2.50% Value 20.4 47 22 59 17 AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb MPS 30.08 364 66 44 59 AT&T APPLE INC KELLOGG Exxon Mobil Bristol-Myers Squibb Date Dividends Date Dividends Date Dividends Date Dividends Date Dividends 7/8/15 0.47 8/6/15 0.52 8/28/15 0.5 8/11/15 0.73 9/30/15 0.37 1.48 10/7/15 0.47 1.88 11/5/15 0.52 11/27/15 0.5 11/9/15 0.73 12/30/15 0.38 1/6/16 0.48 2/4/16 0.52 2.08 2/26/16 0.5 2/9/16 0.73 2.92 3/30/16 0.38 4/6/16 0.48 5/5/16 0.57 5/27/16 0.5 2 5/11/16 0.75 6/29/16 0.38 7/6/16 0.48 8/4/16 0.57 8/30/16 0.52 8/10/16 0.75 10/5/16 0.38 1.52 10/5/16 0.48 1.92 11/3/16 0.57 11/29/16 0.52 11/8/16 0.75 1/4/17 0.39 1/6/17 0.49 2/9/17 0.57 2.28 2/27/17 0.52 2/8/17 0.75 3 4/5/17 0.39 4/6/17 0.49 5/11/17 0.63 5/30/17 0.52 2.08 5/10/17 0.77 7/5/17 0.39 7/6/17 0.49 8/10/17 0.63 8/30/17 0.54 8/10/17 0.77 10/5/17 0.39 1.56 10/6/17 0.49 1.96 11/10/17 0.63 11/30/17 0.54 11/10/17 0.77 1/4/18 0.4 1/9/18 0.5 2/9/18 0.63 2.52 3/2/18 0.54 2/9/18 0.77 3.08 4/5/18 0.4 4/9/18 0.5 5/11/18 0.73 5/31/18 0.54 2.16 5/11/18 0.82 7/5/18 0.4 7/9/18 0.5 8/10/18 0.73 8/31/18 0.56 8/10/18 0.82 10/4/18 0.4 1.6 10/9/18 0.5 2 11/8/18 0.73 11/30/18 0.56 11/9/18 0.82 1/3/19 0.41 1/9/19 0.51 2/8/19 0.73 2.92 3/4/19 0.56 2/8/19 0.82 3.28 4/4/19 0.41 4/9/19 0.51 5/10/19 0.77 5/31/19 0.56 2.24 5/10/19 0.87 7/3/19 0.41 7/9/19 0.51 8/9/19 0.77 8/30/19 0.57 8/12/19 0.87 10/3/19 0.41 1.64 10/9/19 0.51 2.04 11/7/19 0.77 11/29/19 0.57 11/8/19 0.87 1/2/20 0.45 1/9/20 0.52 2/7/20 0.77 3.08 3/2/20 0.57 2/10/20 0.87 3.48 4/2/20 0.45 4/8/20 0.52 5/8/20 0.82 5/29/20 0.57 2.28 5/12/20 0.87 7/2/20 0.45 CAPM CAPM Returns COMPANY WEIGHT REPORTED BETA PORTFOLIO BETA Market return Risk free rate Rate of return AT&T 0.40 0.67 0.27 8% 0.66% 2.63% Bristol-Myers Squibb 0.20 0.72 0.14 8% 0.66% 1.72% Apple, Inc. 0.07 1.17 0.08 8% 0.66% 1.23% Exxon Mobil Corp. 0.13 1.36 0.18 8% 0.66% 1.99% Kellogg Co. 0.20 0.59 0.12 8% 0.66% 1.53% Total Portfolio Beta 0.79 8% 0.66% 6.45% References References Apple Inc. (AAPL) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/AAPL/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d AT&T Inc. (T) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved from finance.yahoo.com website: https://finance.yahoo.com/quote/T/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d BMY SEC Filings - Bristol Myers Squibb. (n.d.). Retrieved July 4, 2020, from www.bms.com website: https://www.bms.com/investors/financial-reporting/sec-filings.html Exxon Mobil Corporation (XOM) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/XOM/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d Kellogg Company (K) Stock Historical Prices & Data - Yahoo Finance. (n.d.). Retrieved July 4, 2020, from finance.yahoo.com website: https://finance.yahoo.com/quote/K/history?period1=1435968000&period2=1593820800&interval=div%7Csplit&filter=div&frequency=1d SEC Filings. (n.d.). Retrieved July 4, 2020, from investors.att.com website: https://investors.att.com/financial-reports/sec-filings SEC Filings | Exxon Mobil Corporation. (n.d.). Retrieved July 4, 2020, from ir.exxonmobil.com website: https://ir.exxonmobil.com/sec-filings SEC Filings - Kellogg Company. (n.d.). Retrieved July 4, 2020, from investor.kelloggs.com website: https://investor.kelloggs.com/financials/sec-filings/default.aspx What is the CAPM - Capital Asset Pricing Model - Formula, Example. (2015). Retrieved from Corporate Finance Institute website: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-capm-formula/ ‌