Read the research report in the provided link below, and thoughtfully and fully address (word process) responses to the following questions. <\/p>\n

https:\/\/seekingalpha.com\/article\/4223062-southwest-airlines-intrinsically-cheap-now-time-buy? You might be asked to register for FREE to read it.<\/p>\n

1. Describe in 1-2 sentences Southwest Airline\u2019s (ticker LUV) sensitivity to the U.S. economic\/business cycle.<\/p>\n

2. Is the U.S. airline industry a relatively high or low fixed costs industry (another way of stating this is a relatively high or low operating leverage industry)? What does this mean for airline cost and profitability over the course of the business cycle? <\/p>\n

3. What single item, not directly under LUVs control, is a key determinant of its cost and profitability?<\/p>\n

4. What is LUVs business model (you may want to read the report before answering this question)?<\/p>\n

5. How have LUVs total returns on equity compared to the Industry and overall Market (S&P 500) in recent years, and over longer time horizons?<\/p>\n

6. Would you describe LUV\u2019s equity as more of a \u2018Growth\u2019 or \u2018Value\u2019 stock? Briefly explain.<\/p>\n

7. Describe in 1-2 sentences what is meant by a company\u2019s \u201cOperating Margin?\u201d Also, give an equation\/formula for Operating Margin.<\/p>\n

8. In the report LUV\u2019s Operating Margins are shown to be consistently higher than its peers\/industry. Are LUVs higher operating margins caused more by higher revenue growth, or greater cost efficiency, or both? Explain based on the research report.<\/p>\n

9. Airplanes are important capital equipment to airlines. How do almost all (U.S. anyway) airlines finance the airplanes they fly? <\/p>\n

10. What has been LUVs ROIC over the last ten years?<\/p>\n

11. Describe LUV\u2019s moat.<\/p>\n

12. In terms of the DCF Model Barnett uses, what are the key assumptions he makes about:<\/p>\n

a. Measure of cash flow used in the DCF model?<\/p>\n

b. Does he use a one-stage or multi-stage DCF model? Explain his reasoning.<\/p>\n

c. RAOCC he uses<\/p>\n

13. What does his DCF Model suggest about LUV\u2019s valuation? Is LUV over, under, or roughly properly valued?<\/p>\n

14. What \u201cRelative Valuation\u201d metrics does Barnett use? According to these valuations is LUV over, under, or roughly properly valued?<\/p>\n

15. What is a Monte Carlo simulation?<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

Read the research report in the provided link below, and thoughtfully and fully address (word process) responses to the following questions. https:\/\/seekingalpha.com\/article\/4223062-southwest-airlines-intrinsically-cheap-now-time-buy? You might be asked to register for FREE to read it. 1. Describe in 1-2 sentences Southwest Airline\u2019s (ticker LUV) sensitivity to the U.S. economic\/business cycle. 2. Is the U.S. airline industry a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/154095"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=154095"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/154095\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=154095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=154095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=154095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}