Conduct company research using the site www.msn.com, and the company’s financial

ID: 2654735 • Letter: C

Question

Conduct company research using the site www.msn.com, and the

company’s financial reports on logitech(www.logitech.com). Provide a minimum ten page report,

organized in 3 Parts titled: INTRODUCTION, ANALYSIS,

CONCLUSION: with at least 8 separate heading sections as shown

below:

1. Summarize how the company’s stock value(logitech) changed from May 11, to

August 5? Provide a Percentage increase or decrease?

2. State the company’s cash-flow over the last 4 years.

3. Estimate, what percent of the company’s revenue comes from domestic

sales and what percent comes from foreign sales.

4. Discuss whether the US dollar strengthened or weakened over the last 3

months versus other major world currencies? Use graphs to illustrate.

5. With information taken from the company’s financial report, discuss how

the company tried to manage its exposure to exchange rate risks?

Discuss all three types of exposures.

6. Try to estimate or otherwise determine the company’s required rate of

return “K” or cost of Capital (WACC)

7. State the valuation formula for an MNC. Describe the three elements.

8. Using these elements discuss what caused the company’s stock price to

change from May 11, to August 5, 2015. Devote at least one paragraph to

each element.

Use informal footnotes at the bottom of each page in your report to show the

reader where you obtained your information.

Prove a list of references at the end of the reportnusing MLA format

Explanation / Answer

Report on Logitech

About Logitech

Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s Web site at www.logitech.com.

Change in Company’s Stock Value

Calendar Year End Stock Prices

Annual Cash Flow Statement

Period Ended

3/31/2015

3/31/2014

3/31/2013

3/31/2012

3/31/2011

Net income

$ 9,283

$ 74,304

$ (227,518)

$ 104,237

$ 105,151

Non-cash items included in net income:

Depreciation

41,304

48,967

51,766

52,277

Amortization of other intangible assets

8,361

17,771

23,571

27,198

Goodwill impairment

122,734

216,688

Investment impairment

2,298

624

3,600

Inventory valuation adjustment

Share-based compensation expense related to options, restricted stock unites and purchase rights

25,825

25,546

25,198

31,529

Write-down of investments

Loss/Gain on sales of available-for-sale investments

(831)

(6,109)

Gain/Loss of disposal of property, plant and equipment

(44)

4,411

2,007

(6,533)

Gain on disposal of fixed assets

Excess tax benefits from Share-based compensation

(2,831)

(2,246)

(26)

(37)

Loss (gain) on cash surrender value of life insurance policies

Release of tax valuation allowance

Equity in net losses of affiliated companies

In-process research and development

Deferred income taxes and other

2,240

(4,828)

(3,209)

(2,249)

Changes in assets and liabilities, net of acquisitions:

Accounts receivable

(8,018)

(219)

45,273

29,279

Inventories

(60,510)

49,471

23,109

(33,277)

Other assets

(4,284)

(1,388)

5,381

(2,570)

Accounts payable

60,413

(21,322)

(33,406)

3,327

Accrued liabilities

(18,139)

14,330

(9,214)

5,462

Net cash provided by operating activities

178,632

205,421

122,389

202,534

165,122

Purchases of property, plant and equipment

(45,253)

(46,658)

(54,487)

(54,199)

Purchases of trading investments

(5,034)

(8,450)

(4,196)

(7,505)

Purchases of short-term investments

Purchase of strategic investment

(2,550)

(300)

(4,420)

Proceeds from sale of property, plant and equipment

8,967

Sale of short-term investments

Proceeds from sales of trading investments

917

6,550

Sales of investments

Acquisitions and investments, net of cash acquired

(926)

(650)

(18,814)

Proceeds from sales of available-for-sale investments

5,474

8,994

4,463

7,399

Proceeds from sale of business

Proceeds from cash surrender of life insurance policies

Proceeds from return of investment from strategic investments

261

Premiums paid on CSV life insurance policies

Other, net

Net cash used in investing activities

(48,289)

(46,803)

(57,723)

(57,602)

(48,241)

Payment of cash dividends

(43,767)

(36,123)

(133,462)

Borrowings (repayments) of short-term debt

Borrowings of long-term debt, net of issuance costs

Contingent cash payment for acquistion

(100)

Repayments of short-term debt

Purchases of treasury shares

(1,663)

(87,812)

(156,036)

Repurchase of ESPP awards

(1,078)

Proceeds from sale of shares upon exercise of options and purchase rights

4,138

16,914

15,982

17,591

Tax withholdings related to net share settlements of RSUs

(9,215)

(5,718)

(2,375)

(966)

Excess tax benefits from share-based compensation

2,831

2,246

Net cash provided by financing activities

(48,854)

(22,681)

(207,641)

(139,374)

46,233

Effect of exchange rate changes on cash and cash equivalents

(13,863)

(349)

(1,571)

(5,119)

(5,127)

Net increase (decrease) in cash and cash equivalents

67,626

135,588

(144,546)

439

157,987

Cash and cash equivalents at beginning of period

469,412

333,824

478,370

477,931

319,944

Cash and cash equivalents at end of period

$ 537,038

$ 469,412

$ 333,824

$ 478,370

$ 477,931