Corporate Finance A. Please provide the following core business information and
ID: 352002 • Letter: C
Question
Corporate Finance
A. Please provide the following core business information and characteristics on Duke Energy Corporation:
1.The company name and ticker symbol.
2. Provide a brief description of this company and the type of product and/or services it provides. If it is a diversify entity, please provide a general description of its operations.
3. Identify the core business of the company.
4. Identify the management structure of the company. This can be done by simply pasting the corporate structure flowchart.
5. Identify the market in which this company is publicly traded.
6. Identify the country in which this company operates (if it is a Multinational Corporation just say Multinational Corporation).
7. Identify the major business and financial risk the company faces along with any major competitors if any.
8. Identify any regulatory or legal institutions that this company is subject to.
Hint: this information can be found on the company’s 10K or 10Q financial reporting in the SEC website.
B. Please provide the following financial information for Duke Energy Corporation for the year-end 2017:
1. What is company’s total market capitalization?
2. What is the company’s book value amount?
3. What is the company’s total amount of outstanding liabilities?
4. What is the company’s total amount of assets outstanding?
5. What is the total amount of long-term debt outstanding?
6. What is the total amount of common equity outstanding?
7. What was the company’s total year-end resulting net income?
8. What is the effective year-end taxes paid by this company?
9. What was the company’s total year-end amount of reported earnings? If it is the same as total net income, the just state total net income.
10. What was the total year-end amount of dividends declared by this company?
11. What was the year-end dividend retention policy by this company?
12. What was total year-end amount of dividends paid, if any, by this company?
13. Identify the total year-end amount of shares outstanding.
C. Please present the following financial and valuation metrics for Duke Energy Corporation for year-end 2016:
1. What was the current market stock price for this company? You could also use the 2017-year end average price or the year-end closing price. If you do so, please state what market stock price you are using.
2. What is the company’s year-end earnings per share (EPS)?
3. What is the company’s year-end dividends per share (DPS)?
4. What was the company’s year-end book value per share (BVPS)?
5. What is the company’s current dividend yield? You could also use the 2017-year end average dividend yield. If you do so, please state?
6. What is the company’s beta coefficient?
7. What is the company’s earnings price multiples (P/E)?
8. What is the company’s market to book ratio (M/B)?
Explanation / Answer
A.
1.The company name and ticker symbol.
Duke Energy Corp. DUK
2. Provide a brief description of this company and the type of product and/or services it provides. If it is a diversify entity, please provide a general description of its operations.
Duke Energy Corp. engages in electric power and gas distribution operations, and provides other energy related services. It operates its business through the following segments: Regulated Utilities, International Energy, and Commercial Portfolio. The Regulated Utilities segment conducts electric and gas operations primarily through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana, and the regulated transmission and distribution operations of Duke Energy Ohio. The International Energy segment principally operates and manages power generation facilities and engages in the sales and marketing of electric power, natural gas, and natural gas liquids outside the U.S. The Commercial Portfolio segment owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants as well as other contractual positions. The company was founded on April 3, 2006 and is headquartered in Charlotte, NC.
3. Identify the core business of the company.
Duke Energy is an electric power holding company in the United States having electricty generation, transmission and distribution as the core business.
4. Identify the management structure of the company. This can be done by simply pasting the corporate structure flowchart.
5. Identify the market in which this company is publicly traded.
NYSE
6. Identify the country in which this company operates (if it is a Multinational Corporation just say Multinational Corporation).
Multinational Corporation(USA and Latin America)
7. Identify the major business and financial risk the company faces along with any major competitors if any.
Today, coal and natural gas powered plants make up around 75% of Duke's owned capacity. Nuclear (about 18%), hydro (7%), and other clean energy options make up the rest. This isn't a bad thing today, but if present social and regulatory trends hold, Duke will increasingly be called upon to decrease its carbon footprint.
Major competitos: NextEra Energy,PPL Corporation,The AES Corporation, Southern Company, PG&E Corporation and American Electric Power.
8. Identify any regulatory or legal institutions that this company is subject to.
The company is subject to Utility Commission.
B.
1. What is company’s total market capitalization?
Market cap is USD 55.17 Billion
2. What is the company’s book value amount?
Book value per as on 18/03/2018 is $76.43 USD
3. What is the company’s total amount of outstanding liabilities?
USD 101.28 B
4. What is the company’s total amount of assets outstanding?
USD 137.19 B
5. What is the total amount of long-term debt outstanding?
USD 54.44 B
6. What is the total amount of common equity outstanding?
721.88M
7. What was the company’s total year-end resulting net income?
3.07 B
8. What is the effective year-end taxes paid by this company?
18.59%(1.2 B)
9. What was the company’s total year-end amount of reported earnings? If it is the same as total net income, the just state total net income.
3.06 B
10. What was the total year-end amount of dividends declared by this company?
S 0.890
11. What was the year-end dividend retention policy by this company?
Nil
12. What was total year-end amount of dividends paid, if any, by this company?
$ 0.890
13. Identify the total year-end amount of shares outstanding.
700 M
C.
1. What was the current market stock price for this company? You could also use the 2017-year end average price or the year-end closing price. If you do so, please state what market stock price you are using.
CMP- $ 76.43
2. What is the company’s year-end earnings per share (EPS)?
4.37
3. What is the company’s year-end dividends per share (DPS)?
$ 0.890
4. What was the company’s year-end book value per share (BVPS)?
59.63
5. What is the company’s current dividend yield? You could also use the 2017-year end average dividend yield. If you do so, please state?
4.01 %
6. What is the company’s beta coefficient?
0.16
7. What is the company’s earnings price multiples (P/E)?
17.6
8. What is the company’s market to book ratio (M/B)?
1.70%