Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TASK: You will create a Financial Analysis Report for a publicly traded firm which fits this criteria: Pays a cash dividend Has bonds in long-term

TASK:

You will create a Financial Analysis Report for a publicly traded firm which fits this criteria:

  1. Pays a cash dividend
  2. Has bonds in long-term debt
  3. Has a published beta
  4. Sells a product (not a services company)

THE PROJECT: CREATE A FINANCIAL ANALYSIS REPORT

Part 1: Description of Firm & Financial Indicators

  1. Name of the firm, with brief description of the firms business
  2. Secondary market where their common stock is traded
  3. Firms beta
  4. Ticker symbol
  5. Most recent common stock price quote
  6. Indicated annual cash dividend
  7. Preferred stock price and dividend, if any (if multiple issues, then one series only)
  8. Description of one of its publicly traded bonds by stating its:
  1. Coupon rate
  2. Maturity date
  3. Recent price
  4. Total par outstanding
  5. Yield to maturity
  6. Current yield rate

Part 2: Financial Statement Analysis:

  1. Download the balance sheet and income statements for the firm.
  2. Calculate (or list, if available) the following financial ratios:
  1. Rate of return on equity
  2. Total asset turnover
  3. Price/Earnings
  4. Equity multiplier
  5. Current Ratio
  1. Evaluate your firms ratios compared with the industry norms . Comment on strengths and weaknesses, with emphasis on opportunities for improvement in shareholder wealth (stock price maxima price maximization).
  2. List the source from which you are pulling comparative information. Beware that methods of calculations of some ratios may vary subtly from your text ratios.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enron And World Finance A Case Study In Ethics

Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin

1st Edition

1403947635, 978-1403947635

More Books

Students also viewed these Finance questions

Question

design a simple performance appraisal system

Answered: 1 week ago