I have decided to do a project on a few clothing companies, Polo Ralph Lauren, Burberry, and True Religion. I want assistance in addressing these key questions.
Using the information found on Yahoo! Finance web pages for Polo Ralph Lauren Corp (RL). The numbers would be for the financials of April 3, 2010 and March 28, 2009. A good source of information is found in the company's 10K Annual Report for 2009. The link to the company's official web site can be found at the bottom of the profile page for Polo Ralph Lauren Corp on Yahoo! Finance.
Problem 1) Discuss Polo Ralph Lauren Corporation in the context of the forces considered when performing an environmental scan.
Problem 2) Discuss the risks that Polo Ralph Lauren Corp needs to consider when conducting its operations.
Problem 3) Explain whether you believe that the company can take on more debt. Use some computations to support your conclusion.
Problem 4) Compare Polo's inventory holding period to Burberry Group PLC (BRBY.L) and True Religion Apparel Inc. (TRLG) Discuss results.
Problem 5) Construct the DuPont Identity for Polo, Burberry, and True Religion. Explain your results.
Problem 6) Determine the MVA for Polo and discuss the results.
Problem 7) Determine the EVA for Polo and discuss the results. Use long term debt plus stockholders' equity for investor supplied capital. Assume that Polo's cost of capital is 9%. Polo's tax rate is 30%.
Problem 8) Determine Polo's free cash flow for 2010.