The document outlines topics to be covered in a business plan and finance class, including preparing a business plan with sections on the organizational plan, marketing plan, and financial documents. Students will work on their business plans in class and present them the following week. The document also provides guidance on preparing stock reports and defines common financial ratios like price-to-earnings, earnings per share, debt-to-equity, and return on equity.

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