Hi , I am looking for help with my final paper for CORPORATE FINANCE.... Below are the instructions. I have also attached a feed back i got from the previous paper i wrote . I have attached the prev

FIN 330 Project 1 milestone one

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Corporate Valuation Report

Overview

Apple Inc. has been growing very fast since it was incorporated in 1977. The organization is the largest producer of electronic devices like watches, computers, phones, and televisions. They have continued to create innovative items like new iPhones, which have been received positively by consumers. The share price of Apple was 189.00 as of May 17th, 2019, which is less 1.08 equivalent to -0.57%. The organization is selling a wide range of products to various age groups. The largest group of people who buy their products are aged 20-45. Their prominent items, like iPhones, iPods, TVs, and watches, are utilized by this age group. The organization has experts and supervisors who ensure that the company is running smoothly. It is also clear that Apple products are widely used in many organizations (Luenendonk, 2018). For example, the organization I work for provides iPhones to senior officials to complete their tasks on time and meet their goals. Apple products do have competitors like Samsung; however, Apple products are the best. Even though the price is slightly higher, the truth is you get gat what you pay for (Beattie, 2019).

Apple Inc. is making products that are accommodating to everyone. The way the products are structured makes any activity in any organization to run smoothly. When it comes to personal concern, Apple ensures your health is on track. They have watches that track your pulse and the calories you consume each day. I am a happy customer of Apple watch because it has been beneficial to me as it defines the number of strides I take every day and how many calories I have burned. Their innovation moves the world to the next level, and the work seems to be more comfortable when you use their products.

Apple is one of the prominent organizations in the world, producing easy to use software and applications. Their applications assist many companies and individuals to work efficiently and to be creative. The apps make the working environment to be conducive to workers. To ensure that every customer gets their applications, they have made their store to assist home specialist, and the customary client to get apple application. They can download them and use them. To make their application run smoothly, Apple usually updates its application and removes bugs each time they update them.

Customer base

The customer base of Apple Inc. is increasing very fast (Nellis, 2018). For two years, people purchasing their products has expanded for thirty percent, which is equivalent to 1.4 billion. Even if the iPhone's sale is going down, Apple brings more than 10 million new customers every year. According to Apple Inc. database, in January 2019, Apple had 1.4 billion mobile devices in the installed base, and this approximates to 100 million people utilizing their products (iPad). There are 900 million people using iPhones, and when we combine the two, we find that there are approximately one billion Apple users (Above Avalon, 2019). 

Key inputs

To ensure that the customer base is maintained or increased, Apple Inc. tries to use three critical data to create attractive products. The three critical data incorporate independent manufacturers, labor, and facilities. Any manufacturing company has suppliers, and it has to rely on them to succeed. The same happens to Apple Inc. It relies on suppliers from across the world to create their products. Apple products contain audio chips, processors, glass components, and others produced by various producers in the United States and the rest of the world like Korea, and Mongolia. Labor is the second input that is used to create Apple products. Apple employs tens of thousands of employees at various corporate headquarters, retail stores, and design centers to provide customer service. The final input is the facilities. Apple focuses on its capital in the production of their products.

Financial History

In the past three years, the financial information of Apple shows the company's great success, the company's position, and how the company's future will be. Sometimes many organizations lag behind siting the mismanagement of finances and the cost of operation, but this is not a problem for Apple. The information depicts that Apple has been working hard to control the price while making the profit at the same time. Checking on the financial statements, Apple's stock costs are developing. If an individual purchases stock some years back and decide to sell them, they are sure of making a profit. The profit is caused due to the rising in stock costs (FTSE Russell, 2019).

Checking the financial trend between 2017 and 2020, the company has received benefits from its customers in exchange for goods and services. In 2017the company collected 229 billion US dollars (annual revenue), a 6.3 percent increase from the year 2016. The following year the revenue increased by 15.86 percent from 2017 amounting to 266 US dollars. Unfortunately, there was a decline of 2.04% in 2019 from the previous year. The annual revenue was 260.174, but this later increased by 5.72 percent for the year ending June 2020. According to the analysis, Apple is making a profit, and it is progressing well year over year (Macrotrends, n.d.). The company is making much profit year after year. In 2017 the company got a net income of 218.5 billion US dollars. The following year the company got 265.3 billion US dollars, which was an increase from the previous year. 

Capital structure

Apple Inc. is the best and most significant global organization in the 21st century. It started low in 1976 to a more $1.1 trillion company as per now. Apple is a successful company that originated from a significant trailblazer in innovation (Carmichael, 2019). An individual has to understand Apple's capital structure to get on how they change to its conditions. Capital structure is the section of how much value and obligations the organization utilizes to back its activities. Equity represents ownership of the company, and it is found out by summing the common stock and the retained earnings, less the number of treasury shares. In 2019, Apple had a total of $91.07 billion of stakeholder's Equity. The stakeholder's Equity consisted of $45.17 billion of common stock at par value and 45.90 billion US dollars in retained earnings. 

Besides, the organization's total liabilities in 2019 were $142.3 billion consisting of $46.2 billion accounts payable, $59.5 billion other current debt, and $36.6 total non-current liability. Apple started giving its first bond and notes in 2013, and this is because of the zero interest rate policy (ZIRP) environment. The relationship and bills totaled $64.46 billion worth of debt. The organization made this move because it was a way of receiving free money but not the capital. The quick and current ratio of Apple Inc. has risen by 59 and 33 percent, respectively, in three years. The deb-to-equity proportion of Apple Inc. is increasing very fast. The debt-to-equity ratio is the best way for the company to measure the amount of ownership in the corporation versus the amount owed by the creditors. In 2016 the debt-to-equity ratio was 50%, but this has increased to 112% in three years. The increase from 50% to 112% shows how fast the structure can change.

Apple increased its dividends amid the second-quarter earnings in April 2019 to $0.77 per share, attracting a 5% increase. The current harvest of Apple's profits stands at 1.6%, and the income ratio based on trailing yearly earning for every share is 22%.

Valuation

The current market value of Equity is gotten by finding the product of the number of shares and the current market share price. The formula for calculating current market value is as follows

Current market value = stock price per year * shares outstanding

Current market value (2019) = $210.00 billion

Current market value (2018) = $201.00 billion

Current market value (2017) = $188.36 billion

The assumptions made during the calculation of the market value are the going-concern assumption that the investor assumes that the company will be in the business for the foreseeable future. Another assumption is the re-investment assumption where the analyst has to make assumptions on how the proceeds that the organization will produce over the same period.

Apple Inc. is the first global organization to reach the market capitalization of $1.12 trillion, and it is likely to hit $1.3 trillion in 2024. eTo put 1.3 trillion dollars into context; analysts consider the following in terms of dollar value 

1. Economies of the entire countries

In 2018 the international Gross Domestic Product was estimated to be 86 trillion in the year ending 2018. Concerning this, the Apple market cap currently is 1.5% of the GDP. In the US, the economy has a GDP of 20.5 trillion dollars, and Apple's market cap in the US represents 6.3 percent of the GDP (The World Bank, n.d.).

1. The market value of some stock exchanges

In July 2019, the world's total market capitalization of all shares sold and bought was estimated to be $85 trillion. Apple Inc. represents 1.5% of the overall market capitalization.

Above Avalon. (2019, May 30). Apple's Billion Users. Retrieved from Above Avalon: https://www.aboveavalon.com/notes/2019/5/30/apples-billion-users#

Beattie, A. (2019, September 22). The story behind apple's success. Retrieved from Investopedia: http://www.investopedia.com/articles/personal-finance/042815/story-behind-apples-success.asp

Carmichael, C. (2019, October 28). Understanding Apple's capital structure. Retrieved from Investopedia: https://www.investopedia.com

FTSE Russell. (2019, May 18). Apple Inc (NMS: AAPL). . Retrieved from FTSE Russell: http://www.mergentonline.com.ezproxy.snhu.edu/companydetail.php?compnumber=12161&pagetype=synopsis

Luenendonk, M. (2018, 17 February). Apple product strategy. Retrieved from Cleverism: https://www.cleverism.com/apple-product-strategy/

Macrotrends. (n.d.). Apple revenue 2006-2020. Retrieved from Macrotrends: https://www.macrotrends.net/stocks/carts/AAPL/apple/revenue

Nellis, S. (2018, Feb 2). Apple's user base grows but analysts probe for more details. Retrieved from Reuters: http://www.reuters.com

The World Bank. (n.d.). GDP (Current US$). Retrieved from worldbank: hppts://data.worldbank.org/indicator/NY.GDP.MKTP.CD?MOST-RECENT-VALUEDESC+TRUE