a project on a few clothing companies, Polo Ralph Lauren, Burberry, and True Religion.
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.
1) Discuss Polo Ralph Lauren Corporation in the context of
the forces considered when performing an environmental scan.
2) Discuss the risks that Polo Ralph Lauren Corp needs to
consider when conducting its operations.
3) Explain whether you believe that the company can take on
more debt. Use some computations to support your conclusion.
4) Compare Polo’s inventory holding period to Burberry Group
PLC (BRBY.L) and True Religion Apparel Inc. (TRLG) Discuss results.
5) Construct the DuPont Identity for Polo, Burberry, and
True Religion. Explain your results.
6) Determine the MVA for Polo and discuss the results.
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%.
8) Determine Polo’s free cash flow for 2010.
