Financial Analysis Report of Royal Bank of Canada

Your paper must be a minimum of $10$ double$-$spaced pages and a maximum of $15$ double spaced pages. You must include a cover page, a reference page and, if necessary, a bibliography page. $($These pages do not count towards the minimum$/$maximum page count.$)$ Each section is worth $10$ points. A minimum of $20$ references are required for this assignment. These MUST be high quality academic and$/$or financial industry references.

Acceptable references include: The Financial Times, The Economist, The Journal of Finance, The Wall Street Journal, BusinessWeek, reuters.com, cnbc$.$com, marketwatch.com, etc. Unacceptable references include: Wikipedia.com, investopedia.com, about.com, eHow.com, personal financial blogs, etc.

$1.$ A brief but concise introduction to the company including:

$-$ Corporate history

$-$ Industry

$-$ Primary Competitors

$-$ Primary Products and$/$or Services

$2.$ A financial analysis of the company using ratios relevant to your company and industry. $($These ratios must be accompanied by commentary explaining their meaning and relevance.$)$ Not every ratio will be relevant in your analysis. However, a minimum of $15$ these ratios must be used. If necessary, you may discuss financial ratios not listed here.

$-$ Current Ratio

$-$ Quick Ratio

$-$ Days Sales Outstanding

$-$ Fixed Asset Turnover Ratio

$-$ Total Asset Turnover Ratio

$-$ Debt Ratio

$-$ Times Interest Earned Ratio

$-$ EBITDA Ratio

$-$ Profit Margin on Sales Ratio

$-$ Basic Earning Power Ratio

$-$ Return on Total Assets Ratio

$-$ Return on Common Equity

$-$ Price$/$Earnings Ratio

$-$ Price$/$Cash Flow Ratio

$-$ Market$/$Book Ratio

$-$ Price to Sales $($TTM$**)$

$-$ Price to Book $($MRQ$*)$

$-$ Inventory Turnover Ratio

$-$ Sales $(5-$year growth rate$)$

$-$ Gross Margin $(5$ year average$)$

$-$ Operating Margin $(5$ year average$)-$ Net Profit Margin $(5$ year average$)-$ Revenue per Employee $($TTM$**)$

$-$ Net Income per Employee $($TTM$**)-$ Return on Assets $(5$ year Average$)$

$*$MRQ: Most Recent Quarter $**$TTM: Trailing Twelve Months

$3.$ A financial benchmark comparison of the company against its primary competitor AND its industry using the $15$ previously utilized ratios.

$4.$ A listing and discussion of possible Real Options available to your company. At least five must be used from the following list:

o $-$ Investment Timing

o $-$ Input Mix $/$ Process Flexibility

o $-$ Output Mix $/$ Product Flexibility

o $-$ Abandonment

o $-$ Temporary$-$Stop $/$ Shutdown

o $-$ Intensity $/$ Operating Scale

o $-$ Expansion

o $-$ Contraction

o $-$ Switching $($Option to Expand or Contract$)$

o $-$ Initiation

o $-$ Deferment

o $-$ Sequencing

o $-$ Growth

o $-$ Financial Flexibility

$5.$ A discussion of how the company is affected by and dealing with fluctuations in the value of the U$.$S$.$ Dollar.

$6.$ A discussion of how the company is affected by and dealing with the tight credit markets.

$7.$ A discussion of the company is affected by and dealing with the global rise in commodity prices.

$8.$ Porter$$s Five Forces $$

$9.$ A discussion of a current event not listed here$$how is the company affected by this issue and how are they dealing with it$.($The Wall Street Journal, Business Week, The Economist, and the Financial Times are good sources.$)$ Wikipedia.org and$/$or Investopedia.org CANNOT be used as sources.

$10.$ At the conclusion of your paper, you must include a buy$/$sell$/$neutral recommendation regarding the company$$s stock. $($Your recommendation is based on the results of your research on #$2$ through #$9.$ Utilize the Capital Asset Pricing Model $($CAPM$)$ to determine if the company$$s stock is underpriced, overpriced, or fairly priced Also include a screen shot of a graphic of the company$$s stock price for the most current one$-$year period.$)$

$11.$ This paper must be written in APA format and on a level reflective of a professional upper year undergraduate student.