Preview

Business Finance Caf De Coral Group

Better Essays
Open Document
Open Document
1137 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Finance Caf De Coral Group
SPD 3147 Business Finance
Semester 1, 2014/15 (Full-time)

Group project

Group: A02C
Company name: Café de Coral Group (0341)
Name: CHENG, Chi Fung (14062897S)
LEUNG, Wai Han (14064891S) MA, Kit Man (14016174S) WONG, Chun Yin (14011688S) WONG, Chui Yi (14064750S)

Introduction Café de Coral Group is the largest Chinese fast-food restaurant chain in Hong Kong which was founded in 1968. It has over 140 restaurants in Hong Kong with more than 14,000 employees. The company slogan is “A hundred Points of Excellence” which wants to provide quality food and service to the customers and let the customers to enjoy time in Café de Coral Group.

Last Price
Cash per share
Total debt/assets (recent years)
Price to Book
Return on equity (recent years)
Café de Coral Group(0341)
$26.6
1.81
0
4.13
15.97
(Date:27/11/2014) The reason why we choose Café de Coral Group as our target company is its stable finance source. According to the data from Google finance, the last price is $26.6 and the cash per share ratio is 1.81 which shows that it has excessive cash. Also, the total debt per asset ratio in recent years is 0 which illustrates that the company nearly doesn’t have debt. Furthermore, it has low valuation as the price to book ratio is 4.13. Moreover, Café de Coral Group is profitable due to the return on equity in recent years is 15.97 which is positive. Therefore, after analyzing different ratios of Café de Coral Group, we believe that it is a suitable company to offer a special dividend

Before paying special dividends
The following figure is the preliminary analysis showing the overall performance of the company, Café de Coral Group (0341), during the period starting from 2011-03-31 to 2014-03-31.
HKD in thousands
12months as of 2014-03-31
12months as of 2013-03-31
12months as of 2012-03-31
12months as of 2011-03-31
Turnover
6,990,463
6,394,089
5,956,438
5,332,639
Cash and bank balances
1,004,093
772,694
854,417
993,333


References: Café de Coral Holdings Limited. (2014). Annual Report 2011. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2011.pdf Café de Coral Holdings Limited. (2014). Annual Report 2012. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2012.pdf Café de Coral Holdings Limited. (2014). Annual Report 2013. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2013.pdf Café de Coral Holdings Limited. (2014). Annual Report 2014. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2014.pdf
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Business Finance {Compass Group}
    • 3119 Words
    • 13 Pages

    Business Finance {Compass Group}

    Compass Group, UK annual revenues (in the year to 30 September 2010) employing over 50,000 people.…

    • 3119 Words
    • 13 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Corp Finance
    • 358 Words
    • 2 Pages

    Corp Finance

    | Maximize the stock price per share over the long run, which is the stock’s intrinsic value.…

    • 358 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Corp Finance
    • 658 Words
    • 3 Pages

    Corp Finance

    1. You invested $1,000 at 4% compounded annually. How much interest was earned in year 5?…

    • 658 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Advanced Financial Statement Analysis - Leon's vs the Brick
    • 4519 Words
    • 19 Pages

    Advanced Financial Statement Analysis - Leon's vs the Brick

    Bibliography: 1. Leon’s Furniture Limited a. Annual Report i. 2006 ii. 2007 iii. 2008 iv. 2009 b. Annual Information Form i. 2006, March 23, 2007 ii. 2007, March 14, 2008 iii. 2008, March 24, 2009 iv. 2009, March 24, 2010 2. The Brick Group Income Fund a. Annual Report i. 2006, March ii. 2007, March 14, 2008 iii. 2008, March 24, 2009 iv. 2009, March 24, 2010 b. Annual Information Form i. 2006, March 22, 2007 ii. 2007, March 16, 2008 iii. 2008, March 13, 2009 iv. 2009, March 25, 2010…

    • 4519 Words
    • 19 Pages
    Best Essays
    Read More
  • Best Essays

    Business Finance
    • 2037 Words
    • 9 Pages

    Business Finance

    The objective of the report is to analyze Samsung Electronics Co., Ltd in relation to the last three years financial summary, with the aim of predicting future development of Samsung Electronics based on its past performance as well as providing some suggestions to clients about investment.…

    • 2037 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Business Finance
    • 17755 Words
    • 72 Pages

    Business Finance

    For a typical firm with a given capital structure, which of the following is correct? (Note: All rates are after taxes.)…

    • 17755 Words
    • 72 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Corporate Finance
    • 337 Words
    • 1 Page

    Corporate Finance

    Why do the principals of Arundel Partners think they can make money buying movie sequel rights? Do you expect any major film studios to be interested in the sort of arrangement described in the case? Why do the partners want to buy a portfolio of sequel rights all at once rather than negotiating film-by-film to buy each?…

    • 337 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Corp Fin
    • 547 Words
    • 3 Pages

    Corp Fin

    There are two ways to compute the projects NPV. The first approach is to calculate it in…

    • 547 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Corporate Finance
    • 82612 Words
    • 331 Pages

    Corporate Finance

    Answers to Concepts Review and Critical Thinking Questions 1. Capital budgeting (deciding whether to expand a manufacturing plant), capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt), and working capital management (modifying the firm’s credit collection policy with its customers). Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates. The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends. Some advantages include: limited liability, ease of transferability, ability to raise capital, and unlimited life. In response to Sarbanes-Oxley, small firms have elected to go dark because of the costs of compliance. The costs to comply with Sarbox can be several million dollars, which can be a large percentage of a small firms profits. A major cost of going dark is less access to capital. Since the firm is no longer publicly traded, it can no longer raise money in the public market. Although the company will still have access to bank loans and the private equity market, the costs associated with raising funds in these markets are usually higher than the costs of raising funds in the public market. The treasurer’s office and the controller’s office are the two primary organizational groups that report directly to the chief financial officer. The controller’s office handles cost and financial accounting, tax management, and management information systems, while the treasurer’s office is responsible for cash and credit management, capital budgeting, and financial planning. Therefore, the study of…

    • 82612 Words
    • 331 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Market Segmentation: For Café de Coral
    • 337 Words
    • 2 Pages

    Market Segmentation: For Café de Coral

    -In Hong Kong, it is a city renowned for hustle and bustle of life. Many people always perceive that “Time is money”, especially for those employees who only have an hour to have their lunch outside. For Café de Coral, it targets the people who moderately treasure and value time. It provides the quick services, such as quick counter selling and self-served food-taking, to customers and tries to ‘create’ time for them.…

    • 337 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Corporate Finance
    • 3654 Words
    • 15 Pages

    Corporate Finance

    Part I – Perfect capital markets, capital structure and cost of capital (15 points) GP Corp. has common stock with a market value of $200 million and riskless debt with a value of $100 million. Investors expect a 15% return on the stock and a 6% return on the debt. Assume perfect capital markets without any taxes. a) Suppose GP issues $100 million of new stock to buy back the debt. What is the expected return of the stock after this transaction? (4 points) b) Suppose instead GP issues $50 million of new debt to repurchase stock. If the risk of the debt does not change, what is the expected return of the stock after this transaction? (4 points) c) If the risk of the debt increases, would the expected return of the stock be higher or lower than in part b)? (4 points) d) Explain what is wrong with the following argument: “If a firm issues debt that is risk free, because there is no possibility of default, the risk of the firm’s equity does not change. Therefore, risk-free debt allows the firm to get the benefit of a low cost of capital of debt without raising its cost of capital of equity.” (3 points)…

    • 3654 Words
    • 15 Pages
    Good Essays
    Read More
  • Best Essays

    Cafe de Coral Marketing Paper
    • 2260 Words
    • 10 Pages

    Cafe de Coral Marketing Paper

    Café de Coral is a major Chinese quick service restaurant chain in Hong Kong. Following is an overview of the potential in the catering market and a specific review of the fast food restaurant market.…

    • 2260 Words
    • 10 Pages
    Best Essays
    Read More
  • Powerful Essays

    Cafe De Coral
    • 2724 Words
    • 13 Pages

    Cafe De Coral

    Café de Coral is the market leader of fast food industry in Hong Kong. It has more the forty years experience in brand building and operating system.…

    • 2724 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Case Study Of Caf De Coral
    • 2010 Words
    • 8 Pages

    Case Study Of Caf De Coral

    Café de coral (CDC) is one of the biggest Chinese fast-food restaurants. Since it was first incorporated in 1968, it has grown to own over 580outlets all over the world. In my following essay, I am going to analysis the strategy being used by CDC.…

    • 2010 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Café de Carol Csr Initiative Recommendation Report
    • 1442 Words
    • 6 Pages

    Café de Carol Csr Initiative Recommendation Report

    Café de Coral (Hong Kong) (“Café de Coral”) is one of the most popular fast food chains in Hong Kong with more than 100 restaurants.…

    • 1442 Words
    • 6 Pages
    Good Essays
    Read More

Related Topics