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    Business finance : Subaru capital spending

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    You will investigate their capital spending activities for the past three years. You will need access to the most recent annual reports for the company so that you can assess their levels of capital expenditures and address the following questions:

    a) For Subaru, report the amount of capital spending. Go back 3 years and compare the levels within the company. Has the amount been roughly constant, or were there big fluctuations? Describe the purposes of the capital expenditures made by the company.

    b) For Subaru, assess the appropriateness of their capital spending. Do the levels make sense to you given the purposes you described in Part 1? Do you consider these investments successful or not! For example, are they earning sufficient profits to support those capital investments? Be very detailed in providing evidence to support your assessment.

    c) Please prepare your clear and comprehensive analysis of the company?s capital spending in Word so that you can edit and modify your analysis at your own pace. This online research should result in a posting of 3-4 paragraphs, single-spaced and adhering to the rules of proper spelling and grammar. You are to include accurate citations of any resources used in your response.

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    Solution Preview

    Overview of Subaru
    "Founded in 1968, Subaru of America, Inc. (SOA) is the U.S. Sales and Marketing subsidiary of Fuji Heavy Industries (FHI) of Japan and is responsible for the distribution, marketing, sales and service of Subaru vehicles in the United States. Equipped with unique Subaru boxer® engine on all models and Symmetrical All-Wheel Drive on most, the Subaru product line, renowned for durability, reliability, traction and "active safety," represents one of the highest repurchase-loyalty ...

    Solution Summary

    The expert examines Subaru capital spending for investigations.