I SITUATION:

OBJECTIVE

The specific objective of this graded written research exercise is to prepare an "executive level financial report" to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst. This report will pertain to the financial evaluation of a real, publicly-traded, company. It will require independent research (web-based or library), careful financial analysis, and the proper application of key financial theories and formulas.

The company that is to be analyzed for this project is Sprint.

SITUATION

You are a financial analyst with the mythical High Technology Corporation ("HTC"). HTC is an established manufacturer of a line of electronic components, which services an international market. HTC is currently a new fully-integrated wireless communication service for world-wide use. A competitive technical and economic product evaluation has determined Sprint is the best potential candidate for a long-term commitment. Sprint is offering a competitively favorable deal. However, based on some serious general concerns about the fallout of companies in the industry in general, the CEO has asked your CFO to conduct a financial analysis Sprint to determine if it is prudent to commit to this company's communication system. The cost of cutting over to the new communications system is significant and any interruption in support during the next few years would adversely affect HTC's performance and profit. Specifically, the question is: will Sprint be financially viable over the next two to three years?

YOUR SPECIFIC ASSIGNMENT

Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of Sprint. In addition to reviewing the traditional financial performance indicators, you are also to review Sprints past and current stock performance.. Your report includes three parts:

(1) An evaluation of Sprints financial performance for the last year. DuPont analysis and analysis of significant financial performance results are required for the last three years. (See detailed description below).

(2) An evaluation of Sprints stock performance for the last one year.

(3) Finally, a specific recommendation, with supporting rationale, as to whether or not Sprints recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.

To assist you in your task, the CFO has provided the following general guidance. Since it is recognized that the industry is undergoing a major contraction, it is very important to comparatively evaluate Sprint'sfinancial and stock performance trends against its Industry.

You may wish to include all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. These factors may include, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports - when these documents are available.

REPORT REQUIREMENTS

YOUR SPECIFIC ASSIGNMENT

Research and analyze the following information for Sprint.

--Annual Balance Sheets for Sprint for the last three years (2012-14).

--The Income Statements for Sprint the last three years (2012-14).

-- Annual reports, 10K or 10Q------

--Industry norms -----------

---Analysts reports on performance

-- Management reports or press releases

Using this information the students have to develop evaluation of the financial performance for Sprint.)

-3Calculate at least 6 financial ratios for the company and its major competitor in the Internet. Write about 1-2 pages of analysis of the ratio results you received. Compare the ratio results against the industry or main competitor. (This is the only part I need answered)