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The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the
The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.
The completed report should include:
- An introduction to the company, including background information.
- A financial statement review.
- Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
- A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
a. Liquidity b. Financial leverage c. Asset management d. Profitability e. Market value
- Calculate Return on Equity (ROE) using the DuPont system.
- Assess management performance by calculating Economic Value Added (EVA).
- Evaluate the soundness of the company
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