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# Egyptian Cultural Center

13 – Net Operating Profit Margin – NOPM

2010 2011 2012 2013 2014

3.18% 3.82% 3.05% 3.37% 3.40%

14- Market Statistics

2010 2011 2012 2013 2014

Beta 1.2 1.35 1.26 1.3 1.23

Market Rate 12% 13.5% 14% 13.75% 14.25%

NRFR 8% 8.25% 7.8 8.2% 8.5%

15- Cash Conversion Cycle Matrices

Case Study Requirements

Using the data depicted,

1- Write a short statement explaining how you perceive the performance of Walgreens during

2014, and assess the management strategy in managing key performance indicators.

2- Using the following Data:

Leverage 0 25% 50% 100%

Equity

Debt

Total

EBIT@ 12%

Cost of Equity

Cost of Debt 10% 10% 10% 10%

Market Value of Debt

Market Value of Equity

Value of Walgreens

Egyptian Cultural Center

Calculate:

1. Missing Data in the Table
2. The Weighted Average Cost of Capital under Different Leverage Scenarios.

How do you assess Walgreens financial performance under the above statistics, and

performance measures?

Assess the best “Dividend Payment Scheme”, and explain why.

Using The Following Table, Calculate :

The Value of the Firm

The Fair Price per Share

The WACC

Comment on the results of your calculations, and suggest corrective actions if needed.

Bonus Question:

If you are the CFO of Walgreens, and you are inclining an expansion in the pharmaceutical

products, The company needs financing, and you are examining the available alternatives,

what would you suggest to compare the alternatives and on what bases would you

select the most proper financing mix for Walgreens.,

Reminder: Best Practice in Writing Up a Case Study Report

Writing a case study report involves following a few rules. These are as follows:

A case study report is not an essay: it is a call for action, to be read by the company’s

managers and executives. Thus, it is of the utmost importance to state immediately, in the

introduction, the report’s conclusion (the action to be considered). This will avoid lengthy

arguments and digression. The report should then set out the reasons for this recommendation,

rather than being written in an “investigative” mode which only identifies the solution at its

conclusion.

A written report is a means of communication: to facilitate this, it should include a table of

contents, page numbering, and all the other basic requirements of a properly formatted

document.

Finally, some pitfalls to avoid:

• A case study report should not simply paraphrase the text provided. Avoid at all costs

rewriting the case word-for-word, or copying figures, tables or graphs already included in

the case study.

• The presentation style of a document is as important as its content: both elements affect

the reader’s perception of the analysis proposed. The report should be written in a simple,

direct and concise style.

• Lastly, subjective phrases such as “it seems”, “I (we) believe”, “in my (our) opinion

”, and “it is obvious that” should be avoided.

Sources of information:

1- Lecture Handouts.

2- Economic reviews issued by world practitioners and educational houses

4- Online articles

5- Public data available about the Company.

Guidelines:

1. Show clearly your reference in accordance with the standard report writing.
2. All tasks should not exceed 25Slides Tops.
• General Company Information The History of Walgreens
• The Great Depression and the Recovery
• World War II and its Effects
• 1990’s to the Present
• Manufacturing Centers and Corporate Headquarters
• Walgreens’s Mission and Strategy
• Strategic Position in the Market and Competition
• Porter’s Five Forces
• Walgreens’s SWOT Analysis Strengths
• Weaknesses
• Opportunities
• Threats
• Financial Statement 2014
• Reference Financial Information
• 1- Debt to Equity Ratio
• 3- Working Capital
• 5- Accounts Receivable Turnover
• 7- Inventory
• 9- Inventory Turnover
• 11- Dividends
• 12- Return on Equity
• 14- Market Statistics
• Case Study Requirements
• Calculate:
• Bonus Question:
• Reminder: Best Practice in Writing Up a Case Study Report

Last Updated on June 15, 2022

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