Question
Choose a company that you will focus on for this assignment. Once you select a company, you cannot switch! Some notes on choosing a company:
Choose a company that you will focus on for this assignment. Once you select a company, you cannot switch! Some notes on choosing a company:
a. Choose a company that you can obtain lots of information on. This can be either a publically traded company or a company you work for or own.
b. Companies in traditional industries (manufacturing, consumer discretionary) may be easier to work with.
c. Resources: BusinessWeek, SEC Online (Edgars), NU Library (Reference USA, D&B Million Dollar Database), yahoo.com/finance, Morningstar.com, Darkside Article.
Create a common size income statement for 2018 and 2019 for your company a. Provide a statement that analyzes your work and demonstrates your understanding of the common size techniques. 3. Perform ratio analysis on your company for 2018 and 2019. At a minimum you should have 5 ratios for each year. (I want to see the calculations).
a. Provide a statement that demonstrates your understanding of what the ratios mean in the context of your company.
4. Analyze your companys capital structure. At a minimum you should:
a. Provide a statement about the companys capital structure and any changes you would recommend making.
This should include:
i. The companys equity position and items like: number of shares, market price, EPS, PE ratio, and book to market value.
ii. The companys debt with a particularly focus on bonds and items like: YTM, rating, ability to pay.
5. Calculate your companys WACC and Analyze if it is optimal.
a. Be sure to clearly breakout the components (Darkside article may help with this). b. Provide a clear statement that demonstrates your understanding of WACC and if it is optimal for your company.
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