ENTREPRENURSHIP CAPITAL & THE FIRM Essay Example | Topics and Well Written Essays - 2250 words

ENTREPRENURSHIP CAPITAL & THE FIRM - Essay Example This is followed by the factors contributing to the planned start-up business and the subsequent running and management of the venture. Influence of Personal Background The interview with the entrepreneur revealed that he is the only child of his parents. As a result, his parents were very attentive to his upbringing. According to Veciana (2007, p. 55), family context and childhood are among the basic factors affecting the decision to create a firm. As he belongs to a developing country, his parents gave utmost importance to his education. He was home-schooled for a year before joining kindergarten. The entrepreneur believes that during this time, he was taught by his parents as well as a home tutor. His father, in particular, often took him along to several parts of the city that he had to visit in the course of business. In this way, he got exposed to various trades from a very early age. His father is probably the very first role model that inspired him to become an entrepreneur. He owned a textile business and the entrepreneur would spend a few hours in the day with his father at the shop. This fits in with Shane’s (2010, p. 149) statement that children of entrepreneurs are more likely to become entrepreneurs themselves. The entrepreneur also reported that his parents did not place many restrictions on him as a child and allowed him to pursue his interests. This encouraged him to be bold and take up challenges. Although the entrepreneur’s parents were affectionate towards him, they also encouraged him to be independent and assume responsibility for his actions. He stated that from the age of three, he began to sleep in a separate room and was responsible for keeping it organized from the age of seven. Even at school, his parents did not interfere when he was punished or scolded by his teachers for not following instructions. He recollects that these influences played a great role in shaping his personality to take up entrepreneurship as a care er choice. As stated by Ginbcus, Vermeulen, and Radulova (2008, p. 23), entrepreneurs tend to be independent and do not have high needs for conformity. This tendency is reflected in the personality of the entrepreneur interviewed. As mentioned earlier, family influences played an important part in shaping the entrepreneur’s eventual career choice. The father being an entrepreneur himself, there was a role model readily available within the immediate environment of the entrepreneur. As a child and even while growing up, the entrepreneur observed his father making business decisions and responding to challenges. During the interview, the entrepreneur stated that observing his father made him aware of the benefits as well as the risks of being an entrepreneur. Sometimes, his father had to make decisions that put the financial future of the family at risk. Sometimes, the risk paid off. But the family also had to face financial difficulties during some periods. The entrepreneur st ated that the determination of his father to persevere and the support of his mother helped them to overcome temporary setbacks. At any rate, the challenges did not deter the entrepreneur from following in his father’s footsteps. In fact, the entrepreneur said that often he felt that his father was not making the right decision. He then resolved that he would not make the same mistakes if he were to run his own business someday. Douglas (2009, p. 7) describes

The Influence of Health Policies and the Future of Health Care in the Essay

The Influence of Health Policies and the Future of Health Care in the U.S - Essay Example This research will begin with the statement that disparities among the American community continue to reflect within the healthcare system despite establishment and engagement of various care systems to foster the improvement of the health systems. Consequently, the population continues to suffer the inherent problems as they arise within the structural organization of the state healthcare systems. Notably, several inherent issues reflect the procedures of administering and acquiring successful and effective care process to the citizens. Firstly, there arises the issue of poverty and income versus the cost of the health systems. Most of the American population consists of citizens whose income levels cannot sustain their health needs. Thus, even as they seek the coverage of the various health policies as initiated by the government to facilitate affordable care to all people, they fail to achieve the required care. Thus, the continually increasing costs of the health care system are a leading factor in contention with respect to the healthcare systems of the USA. Secondly, there is the issue of the insurance cover. The insurance systems in the country continue to charge the citizens accordingly for their health coverage. However, the insurance companies do a disservice to the citizens despite their commitment to the insurance contribution. Most of the insurance provides coverage to limited levels, meaning that certain conditions such as asthma or cancer, which require high costs for treatment, may not receive adequate financial support from the insurance companies. Thus, the health insurance policies need to reflect accordingly to support the citizens of the USA in guarding their rights within these insurance coverage systems. Further, there is a disparity in acquiring healthcare due to the establishment of factors relating to the blacks versus the whites. These aspects of discrimination within the care system result from the multi-ethnic differences and perspe ctives, leading to insufficient and unhealthy care system procedures. Thus, as an issue of concern, the health care system needs to address this section f the arising matters. Lastly, professional perspective is also an inherent issue within the provision of health care in the USA.

Xbox Doxing Guide Essay Example for Free

Xbox Doxing Guide Essay How to get agent on: Call 1800-4 After intro message, push 1 then say other and then wait till the robot says please say or enter your home phone number and say agent. When the agent answers they will tell you their name, and may say whats your name or how may I help you? This is your Response: Hello _______, My name is ___________ with the Universal department of xbox support, and I am need of help from a fello agent. I have a customer on the other line that claims his Xbox 360 CONSOLE has been stolen from his House Hold, and he says he just bought a new xbox 360 and is trying to recover his gamertag, but it will nto recover, So what I was going to do was console ban his STOLEN xbox 360, and get the customer through base line verification to help him on his way to getting a password reset. I tryed pulling his account up in CCF to get him past BASE LINE VERIFICATION and as soon as I opened his account my CCF and my system both froze. So I contacted my team lead and she stated that she would come to my office in the next 10-20 mins to help me fix my system and forward this customer to TIER 2 because it is a major case, if you can help me with this I highly appreciate it! Choices: A:Agent Says no, hang up! B:Agent says yes do the following: Say thanks so much, ask him/her if they can pull the account up in their CCF, if agent says yes, say I was told by my team lead to document all information, including your name and the accounts information on paper so I can document later on my system, so i will need to copy down the base line verification info, and that will make it even easier to verify with customer so we do not have to switch back and fourth to see if the information is correct or not. Then just have the agent give you the BASE LINE INFORMATION that he/she is able to see, one bit of information you have to ask for to get is the Date the Customer joined, and this will help the chances of you getting a reset, You also may want to ask for the Console Serial Number, Some times they give it some times they dont/wont, becuase most are to dumb adn do not know how to locate that information. NOTE: Agents cannot see the Secrect Answer nor the last 4 digits of the Credit Card, so do not waste your time asking for it. How ever they can see what payment method they last used, and the PrePaid Card Code.

The Lake :: essays research papers

The Lake   Ã‚  Ã‚  Ã‚  Ã‚  It was early July and my friend Chad and I decided to join his family at the lake. Chad’s family was already up at the lake, and had some extra room in the condo. So we figured, what the hell, we could go for some boating. Right. The lake the only about a two-hour drive away. We were driving in Chad’s father’s convertible sports car, so the drive was quite pleasant. We drove through twisting canyons and long straight roads going just slightly over the speed limit. We arrived at our destination at record-breaking time, which didn’t seem to make his parents too happy. Along with Chad’s family, which consists of four brothers and one sister, were some neighbor friends of theirs and their five-year-old son Nick. The rest of the day was spent miniature golfing and playing catch with Chad’s little brothers. On the following morning we went with Chad’s parents to rent the boat. We got the boat and loaded it up with the gear. We broke the family into groups so each one could have their own time on the boat. Our group was the one that wanted to ski, wake board, ride on the tube, and throw each other off the tube. The other group consisted of people that either didn’t want to ski or were too young. All the younger kids were in this group. Our group was the first to have the boat. We spent hours and hours out on the lake and had an awesome time, even though I got one of the worst sunburns in my life. We returned with the boat so the other group could take their turn. As the second group left on the boat we decided to just go lounge in the swimming pool. After about a half-hour, Chad’s mom came running in and said they had an accident with the boat and that little Nick was knocked unconscious. We ran from the pool to see what exactly happened. Chad’s sister told us that another boat was traveling way too fast in the no-wake zone while not paying attention and struck the front of our boat. When the boats collided it took everyone a few minutes to notice that Nick was lying face down on the floor of the boat. Panic arose when his mother noticed him lying there motionless. It turned out the other boat actually hit this little boy in the head when

History And Perspectives Of Cooperative Learning Education Essay

Three theoretical positions have guided research on co-op acquisition which is societal mutuality, cognitive-developmental, and behavioural. Social Interdependence Theory is the interaction with other people is indispensable for human endurance. In an instruction scene, societal mutuality refers to pupils ‘ attempts to accomplish, develop positive relationships, adjust psychologically, and show societal competency. The societal mutuality position of concerted acquisition presupposes that the manner societal mutuality is structured determines the manner individuals interact with each other. Furthermore, results are the effect of individuals ‘ interactions. Therefore, one of the concerted elements that have to be structured in the schoolroom is positive mutuality or cooperation. When this is done, cooperation consequences in promotive interaction as group members encourage and ease each other ‘s attempts to larn ( Johnson, Johnson, & A ; Holubec, 1998 ) .A A History of Theory and Research: Social Interdependence Theory ( adapted from Johnson, Johnson and Holubec, 1998, p.3:18 ) Premise: The manner in which societal mutuality is structured determines who persons interact with and determines results. Early on 1900s Kurt Koffka: Groups are dynamic wholes having member mutuality 1920-1940 Kurt Lewin: Mutuality among members, common ends 1940s-1970s Morton Deutsch: Positive, negative, and no end mutuality ( concerted, competitory, individualistic attempts ) ; two mediating variables ( trust & A ; struggle ) ; distributive justness sixtiess David and Roger Johnson: Impact of societal mutuality on accomplishment, relationships, psychological wellness and societal development, interceding variables ( positive mutuality, single answerability, promotive interaction, societal accomplishments, group processing ) seventiess Dean Tjosvold: Research in concern and industry scene Premises of societal mutuality theory: Concerted attempts are based on intrinsic motive generated by interpersonal factors in working together and joint aspirations to accomplish a important end Focus on relational constructs covering with what happens among persons The other one is the cognitive developmental position where it is grounded in the work of Jean Piaget and Lev Vygotsky. Piagetian positions suggest that when persons work together, sociocognitive struggle occurs and creates cognitive disequilibrium that stimulates perspective-taking ability and logical thinking. Vygotsky ‘s theories present cognition as a social merchandise ( Johnson, Johnson, & A ; Holubec, 1998 ) .A A History of Theory and Research: Cognitive Development Theory ( adapted from Johnson, Johnson and Holubec, 1998, p.3:18 ) Premise: When persons cooperate on the environment, sociocognitive struggle occurs, therefore making cognitive disequilibrium, which in bend stimulates perspective-taking ability and cognitive development. Subscribers: Piaget, Vygotsky, Kohlberg, Murray, contention theoreticians ( Johnsons & A ; Tjosvold ) , cognitive restructuring theoreticians Premises: Focus on what happens within a individual individual ( e.g. , disequilibrium, cognitive reorganisation ) Last, the behavioral-social position presupposes that cooperative attempts are fueled by extrinsic motive to accomplish group wagess ( academic and/or nonacademic ) ( Johnson, Johnson, & A ; Holubec, 1998 ) .A A History of Theory and Research: Behavioral Learning Theory ( adapted from Johnson, Johnson and Holubec, 1998, p.3:18 ) Premise: Actions followed by extrinsic wagess ( group eventualities ) are repeated. Subscribers: Skinner ( group eventualities ) ; Bandura ( imitation ) ; Homans, Thibaut & A ; Kelley ( balance of wagess and costs ) ; Mesch-Lew-Nevin ( specific application to cooperative acquisition ) Premises: Concerted attempts are powered by extrinsic motive to accomplish group wagess.DEFINITIONS OF COOPERATIVE LEARNINGConcerted Learning is a learning agreement that refers to little, heterogenous groups of pupils working together to accomplish a common end. Students work together to larn and are responsible for their teammates ‘ acquisition every bit good as their ain. Concerted acquisition is a successful instruction scheme in which little squads, each with pupils of different degrees of ability, utilize a assortment of larning activities to better their apprehension of a topic. Each member of a squad is responsible non merely for larning what is taught but besides for assisting teammates learn, therefore making an ambiance of accomplishment. Students work through the assignment until all group members successfully understand and complete it. In other words, Cooperative Learning besides is a relationship in a group of pupils that requires positive mutuality ( a sense of sink or swim together ) , single answerability ( each of us has to lend and larn ) , interpersonal accomplishments ( communicating, trust, leading, determination devising, and conflict declaration ) , face-to-face promotive interaction, and processing ( reflecting on how good the squad is working and how to work even better ) . Some definitions of concerted acquisition ( besides known as collaborative acquisition ) are the instructional usage of little groups so that pupils work together to maximise their ain and each other ‘s larning the rules and techniques for assisting pupils work together more efficaciously ( Jacobs, Power, & A ; Loh, 2002, p. 1 ) . The point is that concerted larning involves more than merely inquiring pupils to work together in groups. Alternatively, witting idea goes in to assisting pupils make the experience every bit succes sful as possible. There is a difference between merely holding pupils work in a group and structuring groups of pupils to work hand in glove. A group of pupils sitting at the same tabular array making their ain work, but free to speak with each other as they work, is non structured to be a concerted group, as there is no positive mutuality. Possibly it could be called individualistic acquisition with speaking. For this to be a concerted acquisition state of affairs, there needs to be an recognized common end on which the group is rewarded for its attempts. If a group of pupils has been assigned to make a study, but merely one pupil does all the work and the others go along for a free drive, it is non a concerted group. A concerted group has a sense of single answerability that means that all pupils need to cognize the stuff or enchantment good for the whole group to be successful. Puting pupils into groups does non needfully derive a concerted relationship, it has to be structured and managed by the i nstructor or professor. Concerted attempts consequence in participants endeavoring for common benefit so that all group members gain from each other ‘s attempts, acknowledge that all group members portion a common destiny and cognize that one ‘s public presentation is reciprocally caused by oneself and one ‘s squad members and besides experience proud and jointly observe when a group member is recognized for accomplishment.THE COOPERATIVE LEARNING MODEL – THE FIVE KEY ELEMENTSPositive MutualityThe first demand for an efficaciously structured concerted lesson is that pupils believe that they â€Å" sink or swim together. † Within concerted acquisition state of affairss, pupils have two duties which are learn the assigned stuff and guarantee that all members of the group learn the assigned stuff. The proficient term for that double duty is positive mutuality. Positive mutuality exists when pupils perceive that they are linked with group couples in such a manner that they can no n win unless their group couples do ( and frailty versa ) and/or that they must organize their attempts with the attempts of their group mates to finish a undertaking. Positive mutuality promotes a state of affairs in which pupils see that their work benefits group couples and their group couples ‘ work benefits them and work together in little groups to maximise the acquisition of all members by sharing their resources to supply common support and encouragement and to observe their joint success. When positive mutuality is clearly understood, it establishes that each group member ‘s attempts are required and indispensable for group success and each group member has a alone part to do to the joint attempt because of his or her resources and/or function and undertaking duties. There are a figure of ways of structuring positive mutuality within a larning group. Positive Goal Interdependence Students perceive that they can accomplish their acquisition ends if ‘ and merely if all the members of their group besides attain their ends. The group is united around a common end — a concrete ground for being. To guarantee that pupils believe they â€Å" sink or swim together † and care about how much each other learns, the instructor has to construction a clear group or common end, such as â€Å" learn the assigned stuff and do certain that all members of the group learn the assigned stuff. † The group end ever has to be a portion of the lesson. Positive Reward — Celebrate Interdependence Each group member receives the same wages when the group achieves its ends. To supplement end mutuality, instructors may wish to add joint wagess ( e.g. , if all members of the group score 90 % correct or better on the trial, each receives 5 fillip points ) . Sometimes instructors give pupils: 1 ) a group class for the overall production of their group, 2 ) an single class ensuing from trials, and 3 ) fillip points if all members of the group achieve the standard on trials. Regular jubilations of group attempts and success enhance the quality of cooperation. Positive Resource Interdependence Each group member has merely a part of the resources, information, or stuffs necessary for the undertaking to be completed ; the members ‘ resources have to be combined for the group to accomplish its ends. Teachers may wish to foreground the concerted relationships by giving pupils limited resources that must be shared ( one transcript of the job or undertaking per group ) or giving each pupil portion of the needed resources that the group must so suit together ( the Jigsaw process ) . Positive Role Mutuality Each member is assigned complementary and interrelated functions that specify duties that the group needs in order to finish the joint undertaking. Teachers create function mutuality among pupils when they assign them complementary functions such as reader, recording equipment, checker of apprehension, encourager of engagement, and elaborator of cognition. Such functions are critical to high-quality acquisition. The function of checker, for illustration, focuses on sporadically inquiring each group mate to explicate what is being learned. Rosenshine and Stevens ( 1986 ) reviewed a big organic structure of well-controlled research on learning effectivity at the pre-collegiate degree and found â€Å" look intoing for comprehension † to be one specific learning behaviour that was significantly associated with higher degrees of pupil acquisition and accomplishment. Although the instructor can non continually look into the apprehension of every pupil, the instructor can engineer su ch checking by holding pupils work in concerted groups and delegating one member the function of checker. There are other types of positive mutuality. Positive undertaking mutuality exists when a division of labour is created so that the actions of one group member have to be completed if the following member is to finish his or her duty. Positive individuality mutuality exists when a common individuality is established through a name or slogan. Outside menace mutuality exists when groups are placed in competition with each other. Fantasy mutuality exists when a undertaking is given that requires group members to conceive of that they are in a conjectural state of affairs.Face-to-Face Promotive Interactionâ€Å" In an industrial organisation, it ‘s the group attempt that counts. There ‘s truly no room for stars in an industrial organisation. You need gifted people, but they ca n't make it entirely. They have to hold aid. † ( John F. Donnelly, President, Donnelly Mirrors ) Positive mutuality consequences in promotive interaction. Promotive interaction may be defined as persons promoting and easing each other ‘s attempts to accomplish, complete undertakings, and bring forth in order to make the group ‘s ends. Although positive mutuality in and of itself may hold some consequence on results, it is the face-to-face promotive interaction among persons fostered by the positive inter-relationships, and psychological accommodation and societal competency. Promotive interaction is characterized by persons supplying each other with efficient and effectual aid and aid ; interchanging needful resources, such as information and stuffs, and treating information more expeditiously and efficaciously ; supplying each other with feedback in order to better their subsequent public presentation ; disputing each other ‘s decisions and concluding in order to advance higher quality determination devising and greater penetration into the jobs being consider ed ; recommending the effort of attempt to accomplish common ends ; act uponing each other ‘s attempts to accomplish the group ‘s ends ; moving in swearing and trusty ways ; being motivated to endeavor for common benefit ; and keeping a moderate degree of arousal characterized by low anxiousness and stress.AIndividual Accountability/Personal Responsibilityâ€Å" What kids can make together today, they can make entirely tomorrow. † ( Let Vygotsky, 1962 ) Among the early colonists of Massachusetts there was a expression, â€Å" If you do non work, you do non eat. † Everyone had to make their just portion of the work. The 3rd indispensable component of concerted acquisition is single answerability, which exists when the public presentation of single pupils is assessed, the consequences are given back to the person and the group, and the pupil is held responsible by group couples for lending his or her just portion to the group ‘s success. It is of import that the group-knows who needs more aid, support, and encouragement in finishing the assignment. It is besides of import that group members know they can non â€Å" hitchhike † on the work of others. When it is hard to place members ‘ parts, when members ‘ parts are excess, and when members are non responsible for the concluding group result, they may be seeking a free drive. This is called societal idleness. The intent of concerted acquisition groups is to do each member a stronger single in his or her ain right. Individual answerability is the key to guaranting that all group members are, in fact, strengthened by larning hand in glove. After take parting in a concerted lesson, group members should be better prepared to finish similar undertakings by themselves. To guarantee that each pupil is separately accountable to make his or her just portion of the group ‘s work, instructors need to measure how much attempt each member is lending to the group ‘s work, supply feedback to groups and single pupils, aid groups avoid excess attempts by members, and guarantee that every member is responsible for the concluding result. There are common ways to construction single answerability include: Keeping the size of the group little. The smaller the size of the group, the greater the single answerability may be. Giving an single trial to each pupil. Randomly analyzing pupils orally by naming on one pupil to show his or her group ‘s work to the instructor ( in the presence of the group ) or to the full category. Detecting each group and entering the frequence with which each member-contributes to the group ‘s work. Delegating one pupil in each group the function of checker. The checker asks other group members to explicate the logical thinking and rationale underlying group replies. Having pupils teach what they learned to person else. When all pupils do this, it is called coincident explaining. There is a form to classroom acquisition. First, pupils learn cognition, accomplishments, schemes, or processs in a concerted group. Second, pupils apply the cognition or execute the accomplishment, scheme, or procedure entirely to show their personal command of the stuff. Students learn it together and so execute it entirely.Interpersonal and Small-Group Skillsâ€Å" I will pay more for the ability to cover with people than any other ability under the Sun. † ( John D. Rockefeller ) The 4th indispensable component of concerted acquisition is the appropriate usage of interpersonal and small-group accomplishments. In order to organize attempts to accomplish common ends, pupils must acquire to cognize and swear each other, pass on accurately and unequivocally, accept and support each other, and decide struggle constructively. Puting socially unskilled pupils in a group and stating them to collaborate does non vouch that they have the ability to make so efficaciously. We are non born instinctively cognizing how to interact efficaciously with others. Interpersonal and small-group accomplishments do non as if by magic appear when they are needed. Students must be taught the societal accomplishments required for high quality coaction and be motivated to utilize them if concerted groups are to be productive. The whole field of group kineticss is based on the premiss that societal accomplishments are the cardinal to group productiveness. The more socially adept pupils are and the more attending instructors pay-to instruction and honoring the usage of societal accomplishments, the higher the accomplishment that can be expected within concerted larning groups. In the concerted accomplishments conditions, pupils were trained hebdomadal in four societal accomplishments and each member of a concerted group was given two fillip points toward the quiz class if all group members were observed by the instructor to show three out of four concerted accomplishments. The consequences indicated that the combination of positive mutuality, an academic eventuality for high public presentation by all group members, and a societal accomplishments eventuality promoted the highest accomplishment.Group Processingâ€Å" Take attention of each other. Share your energies with the group. No 1 must experience enti rely, cut off, for that is when you do non do it. † ( Willi Unsoeld, Renowned Mountain Climber ) The 5th indispensable component of concerted acquisition is group treating. Effective group work is influenced by whether or non groups reflect on how good they are working. A procedure is an identifiable sequence of events taking topographic point over clip, and procedure ends refer to the sequence of events instrumental in accomplishing outcome ends. Group processing may be defined as reflecting on a group session to depict what member actions were helpful and unhelpful, and do determinations about what actions to go on or alter. The intent of group processing is to clear up and better the effectivity of the members in lending to the collaborative attempts to accomplish the group ‘s ends. While the instructor consistently observes the concerted acquisition groups, he or she attains a â€Å" window † into what pupils do and make non understand as they explain to each other how to finish the assignment. Listening in on the pupils ‘ accounts provides valuable inform ation about bow good the pupils understand the instructions, the major constructs and schemes being learned, and the basic elements of concerted acquisition. There are two degrees of processing which are little group and whole category. In order to guarantee that small-group processing takes topographic point, instructors allocate some clip at the terminal of each category session for each concerted group to treat how effectively members worked together. Groups need to depict what member actions were helpful and non helpful in finishing the group ‘s work and do determinations about what behaviours to go on or alter. Some of the keys to successful small-group processing are leting sufficient clip for it to take topographic point, supplying a construction for processing, stressing positive feedback, doing the processing particular instead than general, keeping pupil engagement in processing, reminding pupils to utilize their concerted accomplishments while they process, and pass oning clear outlooks as to the intent of processing. In add-on to small-group processing, the instructor should sporadically prosecute in whole-class processing. When concerted acquisition groups are used, the instructor observes the groups, analyzes the jobs they have working together, and gives feedback to each group on how good they are working together. The instructor consistently moves from group to group and observes them at work. A formal observation sheet may be used to garner specific informations on each group. At the terminal of the category period the instructor can so carry on a whole-class processing session by sharing with the category the consequences of his or her observations. If each group has a equal perceiver, the consequences of their observations may be added together to acquire overall category information. An of import facet of both small-group and whole-class processing is group and category jubilations. It is experiencing successful, appreciated, and respected that physiques commitment to acquisition, enthusi asm about working in concerted groups, and a sense of self-efficacy in footings of subject-matter command and working hand in glove with schoolmates.Specific COOPERATIVE MODELSThe Jigsaw ModelDefined loosely, Jigsaw is a grouping scheme in which the members of the category are organized into â€Å" saber saw † groups. The pupils are so reorganized into â€Å" adept † groups incorporating one member from each saber saw group. The members of the expert group work together to larn the stuff or work out the job, so return to their â€Å" saber saw † groups to portion their acquisition. In this manner, the work of the expert groups is rapidly disseminated throughout the category, with each individual taking duty for sharing a piece of the mystifier.Jigsaw Groups:Group OneGroup TwoGroup ThreeGroup FourNucleus ( Kathy ) Nucleus ( Susan ) Nucleus ( Jose ) Nucleus ( Jim ) Mitochondria ( Jorge ) Mitochondria ( Randy ) Mitochondria ( Gail ) Mitochondria ( Tan ) Cell Wall ( Sara ) Cell Wall ( Andy ) Cell Wall ( Chris ) Cell Wall ( Julie ) Protoplasm ( Heather ) Protoplasm ( Jessenia ) Protoplasm ( Phu ) Protoplasm ( Karen )Adept Groups:Group OneGroup TwoGroup ThreeGroup FourNucleus ( Kathy ) Mitochondria ( Jorge ) Cell Wall ( Sara ) Protoplasm ( Heather ) Nucleus ( Susan ) Mitochondria ( Randy ) Cell Wall ( Andy ) Protoplasm ( Jessenia ) Nucleus ( Jose ) Mitochondria ( Gail ) Cell Wall ( Chris ) Protoplasm ( Phu ) Nucleus ( Jim ) Mitochondria ( Tan ) Cell Wall ( Julie ) Protoplasm ( Karen ) Jigsaw can be used for sharing different solutions to the same job or for spliting up research duties. For illustration, if the category is analyzing populating cells, one group of pupils learns about the karyon, another learns about the chondriosome, another learns about the cell wall, and so on. The groups are so reconfigured into saber saw groups ; the experts take bends learning their forte to their saber saw group so that each group learns about every subject. Jigsaw is an efficient manner for pupils to go engaged in their acquisition, learn a batch of material rapidly, portion information with other groups, minimise hearing clip, and be separately accountable for their acquisition. Since each group needs its members to make good in order for the whole group to make good, Jigsaw maximizes interaction and establishes an ambiance of cooperation and regard for other pupils. Teachers who listen in to the sharing of one of the saber saw groups can rapidly hear what each of the original groups has been making. Jigsaw II is an alternate scheme, developed by Robert Slavin ( 1990 ) . The procedure is as described above, with the exclusion that pupils in saber saw groups read the full assignment or all of the stuffs to get the information. Group members so take an single trial on the stuff, the consequences of which contribute to a squad mark. There a few stairss on how to implement the Jigsaw Model. First, split the twenty-four hours ‘s lesson into sections, and organize pupil groups. The groups should be diverse in footings of ability. Then, form impermanent expert groups in which pupils are assigned to the same section. Give pupils in these adept groups clip to discourse the chief points of their section and to practise the presentations they will do to their saber saw group. After that, convey the pupils into saber saw groups that are composed of one pupil from each expert group. Have each pupil present her or his section to the group. At the terminal of the session, you may give a quiz so that pupils are held accountable for larning all the stuff. The instructor ‘s function in the saber saw is to ease acquisition. When pupils are in adept groups, the instructor can back up pupils by promoting them to happen ways to set information they learned into their ain words, to associate the stuff to their ain lives, and to give illustrations that help them explicate the stuff to their group. Students should be encouraged to assist each other and to do certain everyone in their group understands the stuff and will be confident showing it to his or her group. If a pupil finds it hard to explicate his or her subject to the saber saw group, a instructor foremost might partner off that pupil with a spouse who will assist research and present the information to the saber saw group and so hold the brace travel together to the expert group and to the saber saw group. This will assist both pupils develop interpersonal accomplishments, communicating accomplishments, and collaborating. To ease this spouse coaching, have both pupils tell you if this is assisting them learn the stuff. Promote both pupils to do suggestions that would assist them larn more expeditiously. The Jigsaw scheme is cardinal to all sorts of work in little groups. Use it often to maximise answerability and interactivity. As pupils become accustomed to sharing their apprehension and thoughts with others, you will happen that they become more responsible scholars. Faced with the demand to joint their acquisition to others, they will get the hang the stuff at a deeper degree than they would otherwise. As you give pupils more and more complex stuffs to discourse, maestro, and present to their equals, you will be supplying them with chances to spread out their thought and apprehension. You can increase answerability by giving single pupils a quiz on the stuff after the saber saw sharing is complete. The scheme can be used in many different ways. Jigsaw can be used during an writer survey. Have each expert group read the books of an writer, and have each pupil present the writer to his or her saber saw group. For younger pupils, each little group can be given a different storybook to read. Students take bends reading parts of the narrative. Then they take bends reading the whole narrative aloud once more in their saber saw groups. Essaies or studies can be divided into subdivisions, and adept groups can research together and so convey their cognition to their saber saw groups to compose the essay or study. Students can be asked to review the same piece of composing in little groups and so portion and compare their reviews in the saber saw group. Give pupils the same multi-step job to work on in little groups ( for illustration, gauge the figure of supermarkets in the United States. Then reorganise pupils into saber saw groups and have them portion and discourse each original group ‘s solution. Chapters or articles can be divided and studied by pupil groups and so shared. Small groups can be asked to develop a solution to the same job ; solutions so can be shared and discussed in saber saw groups. Small groups can carry on the same experiment and so portion and comparison consequences with a saber saw group. Ask little groups to go experts in peculiar spheres and so hold them portion their sphere cognition with the saber saw group.Think, Pair, Share ModelThe think, brace, portion scheme is a concerted acquisition technique that encourages single engagement and is applicable across all class degrees and category sizes. Students think through inquiries utilizing three distinguishable stairss: Think: Students think independently about the inquiry that has been posed, organizing thoughts of their ain. Pair: Students are grouped in braces to discourse their ideas. This measure allows pupils to joint their thoughts and to see those of others. Share: Student braces portion their thoughts with a larger group, such as the whole category. Often, pupils are more comfy showing thoughts to a group with the support of a spouse. In add-on, pupils ‘ thoughts have become more refined through this three-step procedure. Students need many chances to speak in a linguistically rich environment. Research workers have found that pupils ‘ acquisition is enhanced when they have many chances to lucubrate on thoughts through talk. The think, brace, portion scheme increases the sorts of personal communications that are necessary for pupils to internally treat, form, and retain thoughts. In sharing their thoughts, pupils take ownership of their acquisition and negotiate significances instead than rely entirely on the instructor ‘s authorization. Extra benefits of utilizing the think, brace, portion scheme include the positive alterations in pupils ‘ self-pride that occur when they listen to one another and regard others ‘ thoughts. Students have the chance to larn higher-level believing accomplishments from their equals, gain the excess clip or motivating they may necessitate, and addition assurance when describing thoughts to the whole category. In add-on, the â€Å" brace † measure of the scheme ensures that no pupil is left out of the treatment. Even a pupil who is uncomfortable discoursing his or her thoughts with the whole category still has an audience in this measure. Finally, while the scheme may look to be time-consuming, it makes schoolroom treatments more productive, as pupils have already had an chance to believe about their thoughts before immersing into whole-class conversations. The think, brace, portion scheme is ideal for instructors and pupils who are new to collaborative acquisition. It can be used in a assortment of contexts. However, to be effectual, pupils must see a inquiry or issue. It could be a complex inquiry, such as, â€Å" What do you believe were the cardinal issues that led to World War I? † It could be a more straightforward petition, such as, â€Å" Make a form that could be described as ‘a, B, a, B. ‘ † As pupils consider the inquiry or issue, they should deduce some benefit from believing about it further with spouses, such as when there are multiple right replies to a inquiry. For case, in the old illustration, pupils could supply many illustrations of â€Å" a, B, a, B † forms and seeing multiple replies will reenforce this construct. On the other manus, supplying pupils with inquiries that have merely one right response, such as, â€Å" What is 5 + 2? † shortly becomes boring to pupils, as there is non much to portion with spouses or the whole category. The â€Å" think † measure may necessitate pupils simply to be quiet for a few minutes and chew over their ideas about the inquiry. They may compose some ideas in response to the inquiry. Some instructors find it helpful to put a clip bound for the â€Å" think † and â€Å" brace † stairss of the scheme. If you choose to make this, be certain to give pupils an thought of how much clip they will hold. Remember to let sufficient clip during the â€Å" brace † measure to let both pupils to speak about their ideas. In the â€Å" portion † measure of the scheme, pupils can portion their thoughts in several ways. One manner is to hold all pupils stand, and after each pupil responds, he or she sits down, as does any pupil with a similar response. This continues until everyone is seated. Another manner is to travel rapidly through the category, holding pupils respond rapidly, one after the other, or to hold a category ballot. Responses can be recorded on an overhead projector or on a in writing organiser for future treatments. Another fluctuation is to halt after the â€Å" brace † measure, and have pupils write their thoughts. Collect pupils ‘ responses and measure any jobs in understanding. This scheme frequently stretches pupils ‘ believing simply by its execution. Some pupils consider it a challenge to joint their ideas to another individual. However, one time pupils become comfy with this facet, there are ways to spread out the scheme ‘s range. One manner to be certain that pupils have chances is to partner off with a assortment of spouses. Pairing pupils who sit closest to each other is convenient but does n't supply the same rational or societal challenge as suiting the acquisition and treatment manners of a assortment of schoolmates. Another method for changing the scheme is to let two â€Å" brace † stairss before continuing to â€Å" portion. † Students can either take part in two back-to-back couplings or can partner off with one pupil and so the first brace can be grouped with another brace to discourse their ideas before fall ining a whole-class treatment. This double-pair method is peculiarly helpful if you have a really big category or are covering with an particularly complex inquiry. The think, brace, portion scheme can be used to heighten treatments about specific characters in books. For case, a group that is reading The Great Gilly Hopkins by Katherine Paterson might be asked to believe, brace, portion in response to the inquiries, â€Å" Would you be able to be friends with Gilly? Why or why non? † The think, brace, portion scheme can assist pupils larn about the authorship procedure. Students who are asked to take a subject of their ain to compose approximately frequently become stuck. Teachers can do this procedure easier by inquiring early in the twelvemonth, â€Å" Where make narrative thoughts come from? † As pupils think about the inquiry and discourse their thoughts with a spouse, they normally come up with a long and valuable list of thoughts that can take them through an full twelvemonth ‘s worth of authorship. The think, brace, portion scheme works good when there are multiple right replies to a given job. This makes the scheme perfect for inquiries that involve appraisal, forms, logic, and so on. This scheme can besides be used when pupils are make up one's minding how to near a job instead than when they are settling on a specific reply to one. Social surveies content provides many chances to implement this scheme, particularly when presenting new subjects. Use the think, brace, portion scheme by inquiring a inquiry such as, â€Å" What do you already know about the Revolutionary War? † As pupils grapple with ethical subjects, you might inquire inquiries such as, â€Å" Would you hold agreed to be a ‘stop ‘ on the Underground Railroad? Why or why non? † As pupils are carry oning experiments, the think, brace, portion scheme can be a manner for them to organize hypotheses or to discourse their readings of a given experiment. For case, before an experiment on dens eness, pupils might be asked to utilize the think, brace, portion scheme when make up one's minding which of a given set of points will drift when placed in a bath of H2O.Numbered Heads TogetherNumbered Heads Together is a concerted acquisition scheme that holds each pupil accountable for larning the stuff. Students are placed in groups and each individual is given a figure ( from one to the maximal figure in each group ) . The instructor poses a inquiry and pupils â€Å" set their caputs together † to calculate out the reply. The instructor calls a specific figure to react as interpreter for the group. By holding pupils work together in a group, this scheme ensures that each member knows the reply to jobs or inquiries asked by the instructor. Because no 1 knows which figure will be called, all squad members must be prepared. This concerted acquisition scheme promotes treatment and both single and group answerability. This scheme is good for reexamining and incorporating capable affair. Students with particular demands frequently benefit when this scheme is used. After direct direction of the stuff, the group supports each member and provides chances for pattern, dry run, and treatment of content stuff. Group larning methods encourage pupils to take greater duty for their ain acquisition and to larn from one another, every bit good as from the teacher. There are several stairss on how to implement the Numbered Head Together Model. First of all, split the pupils into groups of four and give each one a figure from one to four. Then present a inquiry or a job to the category. Have pupils gather to believe about the inquiry and to do certain everyone in their group understands and can give an reply. Ask the inquiry and name out a figure indiscriminately. Finally the pupils with that figure raise their custodies, and when called on, the pupil replies for his or her squad. This is a flexible scheme that can be used at a assortment of degrees. The instructor may get down with factual information inquiries, and as pupils become more familiar with the scheme, inquire inquiries that require analysis or synthesis of information. Student groups can be given statements such as, â€Å" School uniforms help to maintain pupils focused on faculty members. † Students ‘ undertaking is to come to consensus on whether they agree or disagree, giving an account of their logical thinking. After the pupils respond, have the other groups agree or disagree with the reply by demoing hitchhike up or hitchhike down, and so explicate their logical thinking. Or, if the reply needs clarifying, inquire another pupil to spread out on the reply. This scheme can be used when comprehension inquiries have been posed to groups, and pupils can work together to happen the replies. For illustration, when reading a narrative, pupils can be given the undertaking of analysing one of the characters. They can be asked inquiries such as, â€Å" Which character traits are stated straight, and which are implied by the writer? † and â€Å" What information do you acquire from the character ‘s address and actions? † On the other manus, pupils can measure the quality of a piece of composing utilizing a rubric. Have pupils review the authorship as a group and assign tonss as a group. Ask them to react with their tonss and principle utilizing the numbered caputs together scheme. Furthermore, numbered caputs together can be used when work outing math jobs. Ask inquiries such as â€Å" What are the facts in this job? † â€Å" Which scheme would be most appropriate? † and â€Å" What solution did your group hold on? † This scheme besides can be used after reading a chapter in a text, or after stuff has been presented. Ask clear uping inquiries about the text and have pupils find and discuss the replies. When groups are ready, reexamine the replies utilizing this scheme. Otherwise, this scheme can be used in readying for a trial or quiz. Allow clip for pupils to analyze together in their groups and possibly make inquiries that might be on the trial or quiz. Using the numbered caputs together scheme, inquire inquiries about the stuff that will be on the trial or quiz.THE EFFECTIVE USE OF COOPERATIVE LEARNINGThe effectual usage of concerted acquisition in the schoolroom is frequently built upon a four-step procedure. There are four elements ne ed to be considered as the initial start to plan and implement concerted acquisition into the instruction modus operandis. The first component is presentation of content. In Lesson Methodologies, I talked about the ways in which you can show information to your pupils. These instructional activities must be done prior to any concerted acquisition activity. Concerted acquisition is non a self-instruction theoretical account, but instead a manner for pupils to â€Å" mess around † with antecedently presented stuff. In short, concerted acquisition comes after you ‘ve taught something to your pupils. The 2nd component is teamwork where this is the clip after the new stuff been taught and when pupils are engaged in a concerted acquisition activity. The concerted acquisition scheme ( Jigsaw, Think-pair-share, Numbered caputs ) is selected and explained to the full category. Students are divided into assorted squads and provided sufficient clip to finish their assigned responsibilities. The 3rd component that should be considered is single appraisal. In concerted acquisition, the aim is non the production of a individual set of right replies for the full group but instead the development and sweetening of each member ‘s accomplishment. Although members of the squad work together to get the hang information, each single member must be assessed in relation to her or his command of the content. In short, everybody is tested in line with her or his achievement potency. The last component is team acknowledgment. It is most appropriate to acknowledge and observe the attempts of the squad as a whole. It is every bit of import to observe the attempts of the squad to help single members in larning a specific organic structure of cognition. These ceremonials can be either public or private. Teachers have rewarded squads with an excess deferral, a â€Å" prep base on balls, † a bite, a certification or award, or some other appropriate wages. In many instances, the wages can be every bit simple as a schoolroom cheer or drawn-out series of high fives.

Alternative Energy Sources For Fossil Fuels - 1874 Words

Twenty-four hours a day, seven days a week, from the time we are born until the time we die we are consuming energy. Currently the majority of this energy comes from fossil fuels (i.e. coal, natural gas, and oil). Fossil fuels made up eighty-seven percent of the energy consumed worldwide in 2012 (Gonzalez Lucky). There are many people who do not believe there is an energy crisis, or that there is anything wrong with depending on fossil fuels, however fossil fuels are non-renewable, which means once they are gone we are unable to create more. In addition, the carbon that is located in fossil fuels and released from when used for energy, contributes to the rising global temperature (Maehlum, 2013). This is not the only detrimental effect of fossil fuels, but is perhaps the most serious. The alternate option is to use alternative energy sources (i.e. wind, solar, nuclear, and hydroelectric). 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Garmin (GRMN) Recommendation - Free Essay Example

Sample details Pages: 11 Words: 3439 Downloads: 3 Date added: 2017/09/17 Category Analytics Essay Type Analytical essay Did you like this example? Garmin (GRMN) Recommendation: Buy Industry: Communication Equipment Recent Price $59. 37 Analyst: Jennifer Traynor Target Price $60. 76 Report Date: 5/2/2007 Highlights †¢ Large-cap growth stock with a market cap of $11. 68 billion. †¢ Garmin has the number one GPS market share of 50% in the U. S. and the number two GPS market share in Europe of 16. 7% †¢ Consumer demand for GPS products will continue to increase as technology improves and produces new and innovative products. †¢ High historical ROIC, ranging from 39. 4% to 47%, which is significantly higher than its 11% WACC. Garmin’s revenue is likely to grow 35% per year for the next five years. †¢ Target price of $60. 76, is based on a P/E multiple valuation using a P/E of 19. 6. †¢ The major risks that could cause Garmin not continue on it positive trajectory are: decreasing profit margin, sustainable revenue growth and increasing competition. Key Statistics and Ratios Garmin has been consistently outperforming the communication equipment industry and the SP 500 in ROA, ROE, sales growth, gross margin, and net profit margin in the past five years. Ratios ROE 5Yr. Avg. ROA 5Yr. Avg. Sales 5Yr. Growth Rate Gross Margin 5Yr. Avg. Net Profit Margin 5Yr. Avg. P/E Ratio EPS 5Yr. Growth Rate Dividend Yield 5Yr. Avg. Garmin 30. 38% 25. 71% 35. 04% 52. 46% 29. 39 23. 06 35. 04% 0. 01% Industry 6. 00% 2. 99% 19. 82% 45. 71% 4. 59 25. 25 37. 33% 0. 41% SP 500 18. 21% 6. 84% 13. 29% 44. 32% 12. 31 20. 65 22. 21% 1. 85% Company Overview Garmin Ltd. designs, manufactures and markets portable, fix-mount and hand held Global Positioning Systems (GPS) devices. The company’s stock is currently trading on the NASDAQ. It operates in four segments: mobile/automotive, marine, aviation, and recreational. Products include automotive navigation systems with map information, GPS enabled sonar depth finders for recreational boating and fishing, aviation systems, and GP S enabled cellular phone software. Garmin has the number one GPS market share of 50% in the U. S and the number two GPS market share of 16. 7% in Europe and is currently attempting to increase their market share in Asia by opening two manufacturing plants, both over 230,000 square feet. Garmin products sell in approximately 100 countries and re distributed through a network of about three thousand independent dealers. According to an SP 500 report, Garmin’s top management believes that its marine, automotive, recreational, and aviation product lines will continue to drive their sales and revenue in the future. Garmin has partnered with companies such as Honda, XM Satellite Radio, and MSN Direct to offer innovative and competitive products. In November 2006, Garmin acquired Dynastream Innovations, a Canadian company specializing in the field of personal monitoring technology. In January, Garmin acquired Digital Cyclone, Inc. which provides personalized weather intelligence for wireless devices, and EME TecSat, which is a third-party map developing company that uses Garmin’s technology. Also, Garmin recently announced that it will be sponsoring a NASCAR team, has made agreements with many rental car companies to use Garmin products, entered into an agreement with Honda Europe to begin using Garmin products, and aired its first ever Super Bowl commercial this year. Industry Analysis The demand for consumer electronics is going to be driven by advances in GPS technology. According to research report released April 9 by the Consumer Electronics Association, consumer interest in GPS technology is increasing dramatically. Consumers are wanting the latest and greatest technology that is available. As GPS technology improves each year, providing new and improved products, consumers are going to be demanding these products. GPS devices will continue to gain popularity as old technologies fade and new technologies enter the market. The CEA report also st ates that only 18 percent of online consumers own GPS devices. However, nearly 24 percent of online consumers are expected to purchase a GPS device within the next year, spending on average $410. This means that sales could reach $4. 1 billion in 2007. Assuming Garmin maintains its number one GPS market share in the United States of 50%, the company will possibly see an increase of $2 billion in sales. Valuation Using a DCF model, Garmin’s current per share intrinsic value is $71. 42, which is $12. 05above the current price of $59. 37. This price was forecasted assuming 35% sales growth for the first five years, tapering down to 17% in 2016 and implementing a 7% horizon value growth rate. The model includes a WACC of 11% (SP 500 reports). The assumptions underlying the DCF model are intended to be modest. First, analysts five year sales growth forecast is 36. 9%, 1. 9% higher than the growth rate used in the model. Second, the COGS was set slightly above the previous fi ve year average to account for the possibility of Garmin experiencing a reduction in profit margins. Garmin’s target price of $60. 76 is based on a P/E multiple valuation using a P/E of 19. 6, which are lower than the industry average. I defaulted to the P/E multiples valuation as the final target price as it was the more conservative valuation estimate (compared to the DCF estimate). Financial Health Garmin has experienced strong growth over the last five years. Last year alone, Garmin’s sales grew 72. 6% and I have forecasted them to have a growth rate of 35% for the next five years. This growth rate has been drawn on the assumption that Garmin’s penetration into the market and the new innovative products that it produces will continue to drive up sales. Garmin also has a strong ROIC. Historically, it has ranged from 36. % to 47% which is significantly higher than the 11% WACC. Based on the assumptions that Garmin will continue to have high sales growth tha t contributes to tangible free cash flows, this trend is forecasted to continue for as long as the next ten years. ROIC is forecasted to be 40% and above for the next six years. After that, it will taper down to 28. 2% in 2016. Garmin has outperformed the industry and the SP 500 in sales growth on average over the last five years. Garmin’s five year sales growth average of 35. 04% is 19. 2% higher than the industry average and 23. 6% higher than the SP. Below is Garmin compared to the SP 500, Cobra, and Motorola. Source: BigCharts. com Garmin has also outperformed the industry and the SP in net profit margin. Garmin’s five year net profit margin of 29. 39% is 24. 8% higher than the industry average and 17. 08% higher than the SP. Using the assumptions made in the DCF model, Garmin’s forecasted P/E ratios for the next five years are: 20. 72, 17. 01, 13. 88, 11. 24, and 9. 43. Garmin has said that they expect revenue to exceed $2. 5 billion and EPS to exceed $2 . 70 in 2007. Garmin has also been steadily increasing EPS over the last five years by an average of 39. % each year and is forecasted to continue this growth. Profitability and Cash Flows Garmin’s revenue can be broken down into three geography areas and four product segments. As you can see, Garmin has increased its market share of GPS devices in both Europe and Asia. The decrease in the U. S. market it not considered too threatening to the company’s profitability because the still have a much higher percentage of the GPS market than any of its competitors. 100% 80% 60% 40% 20% 0% 2004 2005 2006 4% 26% 5% 31% 5% 33% Asia Europe North America 70% 64% 62% Revenue by geography Garmin has been steadily increasing its revenues in the auto/mobile segment. The other segments have decreased slightly. However, with the new products that Garmin has currently brought to the market, it is hoping to regain popularity in those segments again. According to a news release on Febr uary 14, 2007 by Garmin, top management anticipates aviation revenue to increase by 20%, marine revenues to increase 20%, recreational to increase 20%, and auto/mobile to increase 50% in 2007. 70 60 50 40 30 20 10 0 2004 2005 2006 Auto/Mobile Recreational Aviation Marine Revenue by segment Garmin’s five year gross margin average is 52. 46%, 6. 75% above the industry five year average. Garmin has increased free cash flows three out of the last four years from $39 million in 2003 to $212 million years in 2006. Garmin is forecasted to continue this trend, with FCF reaching as high as $1,243 million in 2016 (if all model assumptions hold – see spreadsheet analysis included at the end of this report). Garmin’s MVA in 2006 was $13,992. 7 million with an EVA of $366 million. Assuming Garmin’s ability to continue to produce a high ROIC above the WACC, MVA is forecasted to increase for the next three years to $15,150. 2 million and taper down to $2,188. 63 mill ion in 2016. EVA is forecasted to increase each year for the next ten years from $513 million to $3,582 million in 2016. If Garmin is able to achieve these numbers, they will be consistently creating wealth for the company which would increase shareholder’s equity. Products Garmin developed over 70 new products and brought them to the market during 2006. The GPSMAP 496 is an aviation GPS product that offers airport diagrams, navigation, traffic, weather, terrain, preloaded maps, and entertainment information. The Edge 305 with cadence and heart rate is one of the products geared toward athletes and fitness devotees. The Edge 305 includes a self-calibrating wireless speed/cadence sensor, a wireless heart rate monitor, plus a barometric altimeter. The Garmin nuvi 680 is the first portable GPS navigation device to incorporate MSN Direct services. These services include local traffic reports, local gas prices, current weather conditions and forecasts, and local movie times. Th ese new products will be able to be sold at a higher margin because they are the first of their kind to the market. If demand is high, as predicted by the top management in the Feb. 14 news release, Garmin will realize a large profit and will increase sales growth. Garmin is currently working on the GRC 10 which a handheld remote designed specifically for the GDL 69A, a remote sensor that receives broadcasting from XM weather and satellite radio. The company also currently announced the additions to the nuvi product line. Nuvi 200, nuvi 250, and nuvi 270 are all entry level GPS navigation devices designed for you vehicle that offer the benefits of a top of the line in-dash system at a lower cost. Recently Released Products uvi 680 GPSMAP 496 Edge 305 Products in the Pipeline Released to the market in early 2007 Released to the market in December 2006 Released to the market in June 2006 GRC 10 nuvi 200, 250, 270 Anticipated to be released in June 2007 Anticipated to be released la ter in April 2007 Research and Development Garmin spent $113. 31M to Research and Development (RD) in 2006 and is forecasted to allocate 7. 3% of their sales to RD compared to 2% by TomTom, one of its leading competitors. This is where Garmin earns its competitive edge. By focusing on RD, Garmin was able to penetrate the market with 70 products in 2006. They have designed the first portable GPS navigation device to incorporate MSN Direct, a cellular phone software application that delivers an array of tools and health tips to the consumer, and the world’s first aviation GPS receivers to be fully certified to FAA TSO-C129, Class A1 standards. To get this certification by the Federal Aviation Administration, Garmin had to have the minimal standards of an en route, terminal, and non-precision approach (except localizer, localizer directional aid (LDA), and simplified directional facility (SDF)) navigation capability. Risks Garmin’s does face some risks that may caus e them to under perform. One is competition. As GPS devices gain in popularity, other companies have entered that market to share in the profitability. These companies are also offering their products at prices much lower than Garmin. However, Garmin has been anticipating this competition and has worked on offering products at a lower price by reducing costs associated with production. Also, they bring new products with the newest technology to the market as quickly as possible. According to James Peters, CFA, this is where Garmin has a competitive advantage because the engineering and manufacturing process are vertically integrated which reduces product introduction lead times. By lowering costs to stay competitive with the market, there is a risk that Garmin will see a decline in margins. Garmin plans on facing this problem mainly by obtaining yield improvements and cost reductions in manufacturing of current products and incorporating innovative features in their new products that can be sold at a higher price. Management Garmin’s top management all have held multiple positions within the company. Many worked their way up to the positions that they hold now. They are dedicated to the company and this is reflected in the success Garmin is experiencing. The experience of the management team in the GPS market is a strong positive factor in Garmins success. Garmin Management Min H. Kao Chairman of the Board Aug. 05 Chief Executive Officer Aug. 02 President Jan. 99 Kevin S. Rauchman Chief Financial Officer Aug. 00 Treasurer of Garmin Ltd. Aug. 00 Director of Finance of Garmin Int. Jan. 99 Andrew R. Etkind General Counsil Aug. 00 Secretary of Garmin Ltd. Aug. 00 General Counsel of Garmin Int. Feb. 98 Clifton A. Pemble Director of Garmin Ltd. Aug. 04 Director of Dynastream Inn. Dec. 06 Director of Engineering 03-05 Gary V. Kelley Vice President of Marketing 05 Director of Marketing 92-05 Director of Garmin Ltd. 93-04 Brian J. Pokorny Vice President of Operations 05 Director of Operations 97-05 Production Planning Manager 95-97 Recommendation I am rating Garmin a BUY, based on a target price of $60. 76 FY07, above average sales growth, sustainable ROIC above the WACC, and new and innovative technology. Also, based on the DCF model and the P/E multiples valuation model, Garmin is currently undervalued at a price of $59. 7. According to analysts, interest in GPS technology is expected to increase. Consumers are going to keep coming back to buy the latest and greatest technology. Garmin has been able to sustain the number one GPS market share despite increasing competition. Revenues have been increasing for the past five years and Garmin is looking to increase revenues in Europe and Asia. GRMN values in millions (expect for per share items) Historical Income Statements 2002 2003 2004 Total revenue 465 573 763 Cost of goods sold 210 242 351 Gross profit 255 331 411 SGA expenses 45 60 79 Research Development 32 44 62 Depreciati on/Amortization 0 0 0 Interest expense (income), operating 0 0 0 Non-recurring expenses 0 0 0 Other operating expenses 0 0 0 Operating Income 177 227 271 Interest income (expense), non-operating 5 10 9 Gain (loss) on sale of assets 0 0 0 Other income, net 0 (8) (25) Income before taxes 183 229 255 Income tax 40 47 50 Income after taxes 143 182 206 Minority interest 0 0 0 Equity in affiliates 0 0 0 U. S. GAAP adjustments 0 0 0 Net income before extaordinary items 143 182 206 Extraordinary items, total 0 0 0 Net income 143 182 206 Total adjustments to net income 0. 0. 0 0. 0 Basic weighted average shares 215. 6 216. 0 216. 3 Basic EPS excluding extraordinary items 0. 66 0. 83 0. 95 Basic EPS including extraordinary items 0. 66 0. 83 0. 95 Diluted weighted average shares 216. 40 217. 80 218. 06 0. 66 0. 82 0. 94 Diluted EPS excluding extraordinary items Diluted EPS including extraordinary items 0. 66 0. 82 0. 94 Dividend per share common stock 0. 00 0. 25 0. 25 Gross dividends common stock 0. 0 54. 0 54. 1 Retained earnings 142. 8 127. 6 151. 6 2005 1,028 493 535 122 75 0 0 6 0 333 20 0 15 367 61 306 0 0 0 306 0 306 0. 0 216. 3 1. 44 1. 4 218. 24 1. 43 1. 43 0. 25 54. 0 251. 7 2006 1,774 892 882 215 113 0 0 0 0 555 0 0 40 595 80 514 0 0 0 514 0 514 0. 0 216. 4 2. 38 2. 38 218. 85 2. 35 2. 35 0. 50 0. 0 514. 1 2002 Reveun Growth COGS % of Sales SGA % of Sales RD % of Sales DA % of Sales Int. Exp. Oper. Exp. Non-rec Other expenses Int. inc. non-oper. Gain (loss) assets sales Other income, net. Tax Rate Minority interest Equity in affiliates U. S. GAAP adjust. Extrodinary items Adjusteds to NI Share growth Basic EPS before extraordinary items Diluted share growth 45. 2% 9. 8% 6. 9% 0. 0% 0. 0% 0. 0% 0. 0% 1. 1% 0. 0% 0. % 21. 9% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 2003 23. 2% 42. 3% 10. 4% 7. 6% 0. 0% 0. 0% 0. 0% 0. 0% 1. 7% 0. 0% -1. 4% 20. 7% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 2% 25. 8% 0. 6% 2004 33. 1% 46. 1% 10. 4% 8. 1% 0. 0% 0. 0% 0. 0% 0. 0% 1. 2% 0. 0% -3. 3% 19. 4% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 1% 14. 5% 0. 1% 2005 34. 8% 47. 9% 11. 9% 7. 3% 0. 0% 0. 0% 0. 5% 0. 0% 1. 9% 0. 0% 1. 4% 16. 7% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 51. 6% 0. 1% 2006 Average Manual 72. 6% 40. 9% 50. 3% 46. 3% 48% 12. 1% 6. 4% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 2. 3% 13. 5% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 1% 65. 3% 0. % 10. 9% 7. 3% 0. 0% 0. 0% 0. 1% 0. 0% 1. 2% 0. 0% -0. 2% 18. 4% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 1% 39. 3% 0. 3% -2% 0. 00% Dividend growth 100. 00% 0. 11% -0. 24% 0. 00% 24. 97% Year-by-year growth revenue year Total revenue Cost of goods sold Gross profit SGA Research Development Depreciation/Amortization Interest expense (income), operating Non-recurring expenses Other operating expenses Operating Income Interest icome (expense), non-operating Gain (loss) on sale of assets Other income, net Income before tax Income tax Income after tax Minority Interest Equity in affiliates U. S. GAAP adjustment Net income before extraordinary items Extra ordinary items, total Net income after extraordinary items Total adustments to net income Basic weighted average shares Basic EPS excluding extraordinary items Basic EPS including extraordinary items Diluted weighted average shares Diluted EPS exlcuding extraordinary items Diluted EPS including extraordinary items Dividends per share common stock Gross dividends Retained Earnings 35% 2007 2,394. 9 1,149. 6 1,245. 3 261. 2 173. 8 0. 0 0. 0 0. 0 0. 0 810. 3 28. 6 0. 0 (4. 4) 834. 5 153. 8 680. 7 0. 0 0. 0 0. 0 680. 7 0. 0 680. 7 0. 0 216. 7 3. 3. 1 214. 5 3. 2 3. 2 0. 0 680. 7 35% 35% 35% 35. 00% Forecasted Income Statements 10 Years 2008 2009 2010 2011 3,233. 1 4,364. 7 5,892. 4 7,954. 7 1,551. 9 2,095. 1 2,828. 3 3,818. 2 1,681. 2 2,269. 6 3,064. 0 4,136. 4 352. 7 476. 1 642. 7 867. 7 234. 7 316. 8 427. 7 577. 4 0. 0 0. 0 0. 0 0. 0 0. 1 0. 1 0. 2 0. 2 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 1,093. 8 1,476. 7 1,993. 4 2,691. 3 38. 6 52. 1 70. 4 95. 0 0. 0 0. 0 0. 0 0. 0 (5. 9) (8. 0) (10. 8) (14. 6) 1,126. 5 1,520. 9 2,053. 0 2,771. 7 207. 6 280. 3 378. 4 510. 9 918. 8 1,240. 5 1,674. 6 2,260. 8 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0. 0 0. 0 0. 0 918. 8 1,240. 5 1,674. 6 2,260. 8 0. 0 0. 0 0. 0 0. 0 918. 8 1,240. 5 1,674. 6 2,260. 8 0. 0 0. 0 0. 0 0. 0 216. 9 217. 1 217. 3 217. 5 4. 2 5. 7 7. 7 10. 4 4. 2 5. 7 7. 7 10. 4 210. 2 206. 0 201. 9 197. 8 4. 4 6. 0 8. 3 11. 4 4. 4 6. 0 8. 3 11. 4 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 918. 8 1,240. 5 1,674. 6 2,260. 8 30. 00% 2012 10,341. 1 4,963. 7 5,377. 4 1,128. 0 750. 6 0. 0 0. 0 0. 0 0. 0 3,498. 8 123. 5 0. 0 (18. 9) 3,603. 4 664. 2 2,939. 2 0. 0 0. 0 0. 0 2,939. 2 0. 0 2,939. 2 0. 0 217. 8 13. 5 13. 5 193. 9 15. 2 15. 2 0. 0 0. 0 2,939. 2 25. 00% 2013 12,926. 3 6,204. 6 6,721. 1,409. 9 938. 2 0. 0 0. 2 0. 0 0. 0 4,373. 4 154. 4 0. 0 (23. 7) 4,504. 1 830. 2 3,673. 9 0. 0 0. 0 0. 0 3,673. 9 0. 0 3,673. 9 0. 0 218. 0 16. 9 16. 9 190. 0 19. 3 19. 3 0. 0 0. 0 3,673. 9 20. 00% 2014 15,511. 6 7,445. 6 8,066. 0 1,691. 9 1,125. 9 0. 0 0. 2 0. 0 0. 0 5,248. 0 185. 3 0. 0 (28. 4) 5,404. 9 996. 3 4,408. 6 0. 0 0. 0 0. 0 4,408. 6 0. 0 4,408. 6 0. 0 218. 2 20. 2 20. 2 186. 2 23. 7 23. 7 0. 0 0. 0 4,408. 6 18. 00% 2015 18,303. 7 8,785. 8 9,517. 9 1,996. 5 1,328. 5 0. 0 0. 4 0. 0 0. 0 6,192. 6 218. 7 0. 0 (33. 5) 6,377. 7 1,175. 6 5,202. 1 0. 0 0. 0 0. 0 5,202. 1 0. 0 5,202. 1 0. 0 218. 23. 8 23. 8 182. 5 28. 5 28. 5 0. 0 0. 0 5,202. 1 17. 00% 2016 21,415. 3 10,279. 4 11,136. 0 2,335. 9 1,554. 4 0. 0 0. 1 0. 0 0. 0 7,245. 7 255. 8 0. 0 (39. 2) 7,462. 3 1,375. 5 6,086. 8 0. 0 0. 0 0. 0 6,086. 8 0. 0 6,086. 8 0. 0 218. 6 27. 8 27. 8 178. 8 34. 0 34. 0 0. 0 0. 0 6,086. 8 GRMN values in millions (except per share items) Historical Balance Sheets 2002 2003 2004 217 113 58 58 4 23 473 74 0 24 132 0 2 0 706 32 0 23 0 0 26 81 20 2 0 0 103 0 0 1. 08 129 508 0 0 0 638 742 216. 4 0 274 53 83 97 6 27 540 105 0 42 168 0 2 0 857 41 0 25 0 0 39 104 0 3 0 0 107 0 0 1. 08 104 635 0 0 0 741 848 217. 0 250 64 110 1 55 19 39 637 172 0 49 258 0 1 0 1,117 54 0 52 0 0 71 176 0 5 0 0 182 0 0 1. 08 109 787 0 0 0 897 1,079 218. 1 0 year Assets 2005 334 32 171 200 34 30 801 179 0 36 345 0 1 0 1,362 77 0 56 0 0 63 195 0 9 0 0 205 0 0 1. 08 96 1,039 0 0 0 1,136 1,341 218. 2 0 2006 337 73 404 271 28 56 1,169 251 0 0 408 0 69 0 1,897 88 0 155 0 0 95 338 0 1 0 0 339 0 0 1. 08 83 1,553 0 0 0 1,637 1,977 218. 9 0 Cash % of Sales ST. Invest. % of Sales Receivables % of Sales Inventory % of Sales Pre. Exp. % of Sales Other CA % of Sales Net PPE % of Sales Goodwill % of Sales Intangibles % of Sales LV Invest. of Sales Notes Rec. % of Sales Other LT. ass. % Sales Other assets % of Sales 2002 46. 6% 24. 4% 12. 5% 12. 4% 1. 0% 4. 9% 16. 0% 0. 0% 5. 3% 28. 5% 0. 0% 0. 3% 0. 0% 2003 47. 9% 9. 3% 14. 4% 16. 9% 1. 1% 4. 7% 18. 3% 0. 0% 7. 4% 29. 4% 0. 0% 0. 3% 0. 0% 2004 32. 8% 8. 4% 14. 4% 20. 3% 2. 5% 5. 1% 22. 5% 0. 0% 6. 5% 33. 8% 0. 0% 0. 2% 0. 0% 2005 32. 5% 3. 1% 16. 6% 19. 4% 3. 3% 2. 9% 17. 4% 0. 0% 3. 5% 33. 5% 0. 0% 0. 1% 0. 0% 2006 19. 0% 4. 1% 22. 7% 15. 3% 1. 6% 3. 2% 14. 1% 0. 0% 0. 0% 23. 0% 0. 0% 3. 9% 0. 0% Average 35. 8% 9. 9% 16. 2% 16. 9% 1. 9% 4. 1% 17. 7% 0. 0% 4. 5% 29. 6% 0. 0% 1. 0% 0. 0% Manual Cash equivalents Short term investments Receivable, total Inventory, total Prepaid expenses Other current assets, total Total Current Assets Property, plant and equipment (net) Goodwill Intangilbles Long term investments Notes receivable long term Other long term assets, total Other assets, total Total Assets Liabilities and Shareholders Equity Accounts payable Payable/accrued Accrued Expenses Notes payable/short term debt Current portion of LT debt/Capital leases Other current liabilities Total Current Liabilities Long term debt, total Deferred income tax Minority Interest Other liabilities, total Total Liabilities Preferred stock (redeemable) Preferred stock (unredeemable) Common Stock Additional paid-in captial Retained earnings (accumulate deficit) Treasury stock commo n ESOP debt gaurantee Other equity, total Total Shareholders Equity Total Liabilities and Shareholders Equity Diluted weighted average shares Total preferred shares outstanding 7. 00% Acc. Payable % of Sales Pay/accured % of Sales Acc. Exp. % of Sales Notes payable % of Sales Curr. Debt % of Sales Other curr liab % of Sales LT debt % of Sales Def. inc. tax % Sales Min. Int. % of Sales Other liab. % of Sales 7. 0% 0. 0% 4. 9% 0. 0% 0. 0% 5. 6% 7. 1% 0. 0% 4. 3% 0. 0% 0. 0% 6. 8% 7. 0% 0. 0% 6. 8% 0. 0% 0. 0% 9. 3% 7. 4% 0. 0% 5. 4% 0. 0% 0. 0% 6. 1% 5. 0% 0. 0% 8. 7% 0. 0% 0. 0% 5. 3% 6. 7% 0. 0% 6. 0% 0. 0% 0. 0% 6. 6% 0. 5% 0. 0% 0. 0% LT debt is manually adjusted for AFN in the pro formas 0. 5% 0. 7% 0. 9% 0. 1% 0. 5% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% 0. 0% ear Assets Cash equivalents Short term investments Receivable, total Inventory, total Prepaid expenses Other current assets, total Total Current Assets Property, pand and equipment (net) Goodwill Intangible Long term investments Notes receivable long term Other long term assets, total Other assets, total Total Assets Liabilites and Shareholders Equity Accounts Payable Payable/accrued Accrued expenses Notes payable/short term debt Current portion of LT debt/Capital leases Other current liabilities Total Current Liabilities Long term debt, total Deferred income tax Minority interest Other liabilities, total Total Liabilities Preferred stock (redeemable) Preferred stock (unredeemable) Common Stock Additional paid-in-capital Retained earnings (accumulated deficit) Treasury Stock ESOP Debt Guarantee Other equity, total Total Shareholders Equity Total Liabilties and Shareholders Equity 2007 Foreasted Balance Sheets 10 Years 2008 2009 2010 2011 540 226 522 545 61 133 2,028 571 0 146 146 958 31 0 3,882 217 0 195 0 0 214 626 2 17 0 0 645 0 0 1 83 3,152 0 0 0 3,595 3,882 835 306 705 736 83 180 2,844 771 0 198 198 1,293 42 0 5,347 293 0 263 0 0 289 845 1 23 0 0 869 0 0 1 83 4,393 0 0 0 4,86 6 5,347 1,236 412 952 993 112 243 3,949 1,042 0 267 267 1,746 57 0 7,327 395 0 356 0 0 391 1,141 2 31 0 0 1,175 0 0 1 83 6,068 0 0 0 6,571 7,327 1,775 557 1,285 1,341 151 328 5,437 1,406 0 360 360 2,357 77 0 9,998 534 0 480 0 0 527 1,541 2 42 0 0 1,585 0 0 1 83 8,328 0 0 0 8,861 9,998 2012 2,721 724 1,671 1,744 196 427 7,482 1,828 0 468 468 3,065 100 0 13,410 694 0 624 0 0 685 2,003 1 55 0 0 2,058 0 0 1 83 11,268 0 0 0 11,831 13,410 2013 4,876 905 2,089 2,179 245 533 10,827 2,285 0 585 585 3,831 125 0 18,238 867 0 780 0 0 857 2,504 2 68 0 0 2,574 0 0 1 83 14,941 0 0 0 15,549 17,600 2014 6,490 1,086 2,506 2,615 294 640 13,631 2,742 0 702 702 4,597 150 0 22,524 1,041 0 936 0 0 1,028 3,005 3 82 0 0 3,090 0 0 1 83 19,350 0 0 0 19,983 22,524 2015 9,363 1,281 2,958 3,086 347 755 17,790 3,235 0 828 828 5,424 177 0 28,283 1,228 0 1,105 0 0 1,213 3,545 4 97 0 0 3,647 0 0 1 83 24,552 0 0 0 25,224 28,283 016 12,849 1,499 3,460 3,611 405 884 22,708 3,785 0 969 969 6,346 207 0 34,986 1,437 0 1,2 92 0 0 1,419 4,148 1 113 0 0 4,262 0 0 1 83 30,639 0 0 0 31,374 34,986 428 168 387 404 45 99 1,531 423 0 0 108 710 23 0 2,795 161 0 145 0 0 159 464 0 13 0 0 477 0 0 1 83 2,234 0 0 0 2,648 2,795 Total common shares (diluted) Total preferred shares outstanding AFN (interactive with 3 items below) Adjustment to LT Debt Buy Back Common Stock to Fund AFN Set Balance Sheet Cash Lower to Fund AFN 214 0 0 0 330 428 210 0 0 1 358 540 206 0 (0) (1) 388 835 202 0 (0) 1 419 1,236 198 0 0 (0) 448 1,775 194 0 0 (1) 478 2,721 190 0 0 1 523 4,876 186 0 0 1 549 6,490 182 0 (0) 1 588 9,363 179 0 0 (4) 651 12,849 ear Liquidity Current Quick Net Working Captial to Total Assets Asset Management Days Sales Outstanding Inventory Turnover Fixed Asset Turnover Total Asset Turnover Debt Management Long-Term Debt to Equity Total Debt to Total Asset Times Interest Earned Profitability Gross Profit Margin Operating Profit Margin Net After-Tax Profit Margin Total Assets Turnover Return on Assets Equity Multiplie r Return on Equity GRMN values in millions (except per share items) Historical Ratios and Valuation Model 2002 2003 2004 5. 83 5. 12 0. 56 45. 73 8. 09 6. 25 0. 66 0. 0 0. 0 N/A 54. 8% 38. 1% 30. 7% 0. 66 20. 2% 1. 11 22. 4% N/A 57. 7% 39. 6% 31. 7% 0. 67 21. 2% 1. 16 24. 5% 5. 17 4. 24 0. 51 52. 69 5. 92 5. 47 0. 67 0. 0 0. 0 N/A 53. 9% 35. 5% 27. 0% 0. 68 18. 4% 1. 5 22. 9% 3. 61 2. 73 0. 41 52. 71 4. 92 4. 44 0. 68 0. 0 0. 0 2005 4. 10 3. 08 0. 44 60. 73 5. 14 5. 74 0. 75 0. 0 0. 0 N/A 52. 1% 32. 4% 29. 7% 0. 75 22. 4% 1. 20 26. 9% 2006 3. 46 2. 66 0. 44 83. 02 6. 55 7. 07 0. 94 0. 0 0. 0 N/A 49. 7% 31. 3% 29. 0% 0. 94 27. 1% 1. 16 31. 4% 2007 3. 30 2. 43 0. 38 58. 98 5. 93 5. 66 0. 86 0. 0 0. 0 2008 3. 24 2. 37 0. 36 58. 98 5. 93 5. 66 0. 83 0. 0 0. 0 2009 Forecasted Ratios nd Valuation Model 10 Years 2010 2011 2012 2013 3. 46 2. 59 0. 38 58. 98 5. 93 5. 66 0. 80 0. 0 0. 0 3. 53 2. 66 0. 39 58. 98 5. 93 5. 66 0. 80 0. 0 0. 0 3. 74 2. 86 0. 41 58. 98 5. 93 5. 66 0. 77 0. 0 0. 0 4. 32 3. 45 0. 46 58. 8 5. 93 5. 66 0. 71 0. 0 0. 0 2014 4. 54 3. 67 0. 47 58. 98 5. 93 5. 66 0. 69 0. 0 0. 0 2015 5. 02 4. 15 0. 50 58. 98 5. 93 5. 66 0. 65 0. 0 0. 0 2016 5. 47 4. 60 0. 53 58. 98 5. 93 5. 66 0. 61 0. 0 0. 0 3. 36 2. 49 0. 37 58. 98 5. 93 5. 66 0. 82 0. 0 0. 0 52. 0% 33. 8% 28. 4% 0. 86 24. 4% 1. 06 25. 7% 3. 17 52. 0% 33. 8% 28. 4% 0. 83 23. 7% 1. 08 25. 6% 4. 37 52. 0% 33. 8% 28. 4% 0. 82 23. 2% 1. 10 25. 5% 6. 02 52. 0% 33. 8% 28. 4% 0. 80 22. 9% 1. 12 25. 5% 8. 30 52. 0% 33. 8% 28. 4% 0. 80 22. 6% 1. 13 25. 5% 11. 43 52. 0% 33. 8% 28. 4% 0. 77 21. 9% 1. 13 24. 8% 15. 16 52. 0% 33. 8% 28. 4% 0. 71 20. 1% 1. 17 23. 6% 19. 34 52. 0% 33. 8% 28. 4% 0. 9 19. 6% 1. 13 22. 1% 23. 68 52. 0% 33. 8% 28. 4% 0. 65 18. 4% 1. 12 20. 6% 28. 51 52. 0% 33. 8% 28. 4% 0. 61 17. 4% 1. 12 19. 4% 34. 04 EPS (using diluted shares and excluding extraordinary itmes) 0. 66 0. 83 0. 94 1. 40 2. 35 DPS (dividends per share) 0. 00 0. 25 0. 25 0. 25 0. 00 A B C D E F Valuation Metrics Trend Analysis (NOPAT, EVA, MVA, FCF and Captial in millions 2002 2003 2004 2005 2006 NOPAT (net operating profit after tax) 139 180 218 277 480 ROIC (return on invested capital) 39. 4% 36. 5% 37. 5% 36. 8% 47. 0% EVA (economic value added) 100 125 154 194 366 FCF (free cash flow) N/A 39 130 106 212 Weighted Average Cost of Capital 11. % Net Operating Working Capital (NOWC) 277 388 410 573 769 Operating Long Term Assets 74 105 172 179 251 Total Operating Capital 352 493 581 752 1,020 Valuation (in millions where appropriate) through year 2016 2006 Long-term Horizon Growth Rate (user-supplied) 7. 00% PV of forecasted FCF, discounted at 11. 1% $ 15,630 Value of Non-Operating Assets $ 410 Total Intrinsic Value of the Firm $ 16,041 Intrinsic Market Value of the Equity $ 16,021 Per Share Intrinsic Value of the Firm $ 71. 42 MVA (market value added) $ 13,992. 71 Weighted Average Cost of Capital Calulation Item Value Percent Cost Weight Cost ST Debt (from most recent balance sheet) 0 0. 00% 7. 00% 0. 0% LT Debt (from most recent balance sheet) 0 0. 00% 8. 50% 0. 00% MV Equity 191,420 100. 00% 11. 00% 11. 00% Weighted Average Cost of Capital 11. 00% Capital Asset Pricing Model Risk Free Rate 4. 80% Beta 1. 17 Market Risk Prem. 7. 00% Cost of Equity 12. 99% 2007 661 49. 4% 513 344 11. 1% 914 423 1,337 2007 $ 17,021 $ 596 $ 17,617 $ 17,617 $ 79. 36 $ 14,373. 15 2008 892 50. 5% 696 462 11. 1% 1,196 571 1,767 2008 $ 18,449 $ 766 $ 19,215 $ 19,213 $ 87. 77 $ 14,853. 99 2009 1,205 48. 3% 928 480 11. 1% 1,720 771 2,491 2009 $ 20,016 $ 1,141 $ 21,157 $ 21,156 $ 97. 18 $ 15,150. 82 Forecasted Valuation Metrics 10 Years 2010 2011 2012 1,626 2,195 2,854 46. 8% 45. 8% 42. % 1241 1663 2116 645 873 1002 11. 1% 11. 1% 11. 1% 2,431 3,388 4,818 1,042 1,406 1,828 3,472 4,794 6,646 2010 $ 21,593 $ 1,648 $ 23,241 $ 23,239 $ 106. 97 $ 15,022. 23 2011 $ 23,116 $ 2,332 $ 25,448 $ 25,446 $ 116. 85 $ 14,255. 21 2012 $ 24,680 $ 3,445 $ 28,125 $ 28,124 $ 127. 30 $ 12,849. 45 2013 3,567 36. 5% 2481 431 11. 1% 7,497 2,285 9,782 2013 $ 26,988 $ 5,781 $ 32,769 $ 32,767 $ 142. 05 $ 11,439. 21 2014 4,281 34. 6% 2907 1685 11. 1% 9,635 2,742 12,377 2014 $ 28,299 $ 7,576 $ 35,874 $ 35,872 $ 151. 99 $ 8,315. 41 2015 5,051 31. 0% 3241 1118 11. 1% 13,074 3,235 16,310 2015 $ 30,321 $ 10,644 $ 40,966 $ 40,961 $ 166. 18 $ 5,096. 78 2016 5,910 28. 2% 3582 1243 11. % 17,191 3,785 20,976 2016 $ 33,563 $ 14,348 $ 47,911 $ 47,910 $ 188 $ 2,188. 63 Historical ROIC: Decomposition and Drivers Firm Ticker: GRMN Gross Margin 2002 54. 80% 49. 70% 2006 Operating Margin 2002 28. 10% 31. 30% 2006 SGA/Revenues 2002 9. 67% 12. 12% 2006 Depreciation/Revenues 2002 0% 0% 2006 Oper. Working Captial/Revenues 2002 59. 57% 43. 35% 2006 Fixed Assets/Revenues 2002 50. 11% 41. 04% 2006 ROIC 2002 39. 4% 47% 2006 Pre-Tax ROIC 2002 50. 28% 54. 41% 2006 Cash Tax Rate 2002 21. 90% 13. 50% 2006 Average Capital Returns 2002 0. 91 1. 18 2006 Forecasted ROIC: Decomposition and Drivers Firm Ticker: GRMN Gross Margin 2007 52. 00% 52. 00% 2016 Operating Margin 2007 33. 80% 33. 0% 2016 SGA/Revenues 2007 10. 90% 10. 91% 2016 Depreciation/Revenues 2007 0% 0% 2016 Oper. Working Captial/Revenues 2007 38. 16% 80. 27% 2016 Fixed Assets/Revenues 2007 52. 78% 57. 33% 2016 ROIC 2007 49. 4% 28. 2% 2016 Pre-Tax ROIC 2007 60. 61% 34. 54% 2016 Cash Tax Rate 2007 18. 40% 18. 40% 2016 Average Capital Returns 2002 1. 1 0. 72 2006 GRMN Piotroskis Financial Fitness Evaluator Value 514 212 1. 43 1. 08 5. 59 -0. 64 0. 28% -2. 40% 1. 49 0. 61 0. 61 Score 1 1 1 1 1 0 1 0 1 1 1 9 Rationale Score 1 point for positive net income. Score 1 point for positive free cash flow. Score 1 point if % increase in NI % increase in total assets. Score 1 point if EBIT ; NI Score 1 point if % increase in TA ; % increase in TL Award 1 point if Current Ratio at least is as large as last year. Award 1 point if total dilluted shares incrased by less than 2%. Award 1 point if gross margin increased last year. Award 1 point if sales increased fast er than total assets Award 1 point if ratio is less 5. 0. Award 1 point if ratio is less than 4. 0. Net Income Free Cash Flow ROA (% change NI/%change TA) Earnings Quality (EBIT/NI) Total Assets to Total Liabilities Working Capital (Current Ratio) % Change Shares Outstanding (Diluted) Gross Margin Asset Turnover (% change sales/%change assets) Total Liabilities to EBITDA Total Liabilities to Operating Cash Flow (EBIT) Total Score (11 = maximum) Don’t waste time! Our writers will create an original "Garmin (GRMN) Recommendation" essay for you Create order