Question
Choose a company whose financials you can acquire online or in print. Spread 3 years of financials for the company using Excel. (Do actual fiscal
Choose a company whose financials you can acquire online or in print. Spread 3 years of financials for the company using Excel. (Do actual fiscal year-ends, not estimated.) In all calculations, use real numbers from the financials, not reported ratios provided by online and other sources. Collect stock dataprice, shares outstanding, etc. Calculate financial ratios, and compare to industry average. What can you conclude from the ratios? Any warning signs? Anything that stands out? Perform common size analysis. What does this analysis tell you about your company? Are there any trends apparent with either the industry or your firm? Use the extended DuPont equation to provide a summary and overview of your firms financial condition. (From Profit Margin, Total Asset Turnover, and equity multiplier on.) Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. What do you estimate the companys WACC? What is your summary of this companys financial condition? What major factors should the company be aware of as it evaluates possible investment projects in the future? Would you be interested in investing in this company? Why or why not? Are there additional factors that arent a part of this mini-case that you would investigate before making a decision, & if so, what factors? As with all assignments, the more closely I can follow your methodology and see where your numbers come from the better the outcome.
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