analysis of a company using data from its annual report.

User Generated

nfuyrr1980

Business Finance

Description

Analysis of a company using data from its annual report.  Analyze the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.

The completed report should include:

  • An introduction to the company, including background information.
  • A complete and thorough financial statement review.
  • 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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Explanation & Answer


Anonymous
I was struggling with this subject, and this helped me a ton!

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