1.
Summerfuel Finance
Class 7: 7-18-2016

2.
Today
Business Plan & Project -
Explained
Stock Reports 2 Prepared

3.
Business Plan Outline
1. Executive Summary
2. Part I: The Organizational Plan
3. Part II: The Marketing Plan
4. Part III: Financial Documents
 Work on In Class : Tuesday & Wednesday this
week, Monday next week
 Present next Tuesday and Wednesday
You will get out of this what you put into it !

4.
The Organizational Plan
Products or Services you will sell
Business Strategy

5.
The Marketing Plan
 Market Analysis
 Target Market
 Who is your Competition
Marketing Strategy- the 4 P’s
Product – Design, features
Place - Method of Sales and Distribution (stores,
offices, kiosks, catalogs, d/mail, website)
Promotion- How w medium , where ill you
advertise, package, brand, package
Pricing (price strategy and competitive position

6.
Financial Documents
1. Beginning Balance Sheet at Start after
Funding
 Assume that you will have 25% of
total asset of your own money for
equity
 How much will raise in debt vs equity
2. Income statement for the 1st Year
3. Ending Balance Sheet after the 1st Year
 How did one year of operations
impact your company ?

7.
Stock Reports
 Tuesday
Oliver, Javier, Ali, Joseph, Eduardo,
Joao
 Wednesday
Kaan, Gonzalo, Francisco, Gabriel,
Mathilda, Niki, Nasia
 Thursday
Rafael, Soraya, Bea, Pabvlo, Aboud,
Ben

8.
Stock Reports

9.
Google Finance
 https://www.google.com/finance

10.
Price to Earnings
 The price-earnings ratio (P/E Ratio) is the ratio for
valuing a company that measures its
current share price relative to its per-share earnings.
 The price-earnings ratio can be calculated as:
Market Value per Share / Earnings per Share
 For example, suppose that a company is currently
trading at $43 a share and its earnings over the last 12
months were $1.95 per share. The P/E ratio for the
stock could then be calculated as 43/1.95, or 22.05.


11.
Earnings per share
 Earnings per share (EPS) is the portion of a company's
profit allocated to each outstanding share of common
stock. Earnings per share serves as an indicator of a
company's profitability.
Net Income / Shares of Stock

12.
Debt to Equity
 The D/E ratio indicates how much debt a company
is using to finance its assets relative to the amount
of value represented shareholders’ equity.
Debt /Equity Ratio = Total Liabilities/Shareholders' Equity

13.
Return on Equity
 Return on equity (ROE) is the amount of net
income returned as a percentage
of shareholders equity.
 Return on equity measures a corporation's
profitability by revealing how much profit a
company generates with the money shareholders
have invested.
Return on Equity = Net Income/Shareholder's Equity