Question Description
I’m trying to study for my Business course and I need some help to understand this question.
· Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
· Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
a.Liquidity
b.Financial leverage
c.Asset management
d.Profitability
e.Market value
· Calculate Return on Equity (ROE) using the DuPont system.
· Assess management performance by calculating Economic Value Added (EVA).
· Review of the soundness of the company’s financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.
· A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.


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