Question
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 either recommending or not recommending purchase of the company stock. The completed report should include: An introduction to the company, including background information. A complete and thorough financial statement review. Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories: Liquidity Financial leverage Asset management Profitability Market value Debt Per-Share Measures of relative value (P/E, P/B) Activity Cash Flow A calculation of Return on Equity (ROE) using the DuPont system. Assessment of management performance by calculating Economic Value Added (EVA). A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company. Evaluate the financial risks associated with operating internationally. If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally. eBay Inc. (NMS: EBAY) to Company Analysis List Recent Companies Company Details Executives Ownership Company Financials Reports Filings News Competitors Search Synopsis Change Company Report Builder Business Summary eBay Inc. is a global technology company. Co. connect buyers and sellers around the world. The technologies and services that power its platforms are designed to enable sellers to organize and provide their inventory for sale and buyers to find and buy it virtually anytime and anywhere. Co.'s Marketplace platforms include its online marketplace located at www.ebay.com, its localized counterparts and the eBay mobile apps. Co.'s StubHub platforms include its online ticket platform located at www.stubhub.com and the StubHub mobile apps. Co.'s Classifieds platforms include a collection of brands such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Classifieds and others. Pricing Summary Time Period 1 week Key Executives Thomas Tierney Age Salary NonExecutive Chairman 61 28,000 Devin Wenig Age Salary President,Chief Executive Officer,Division Officer 48 942,308 Scott Schenkel Age Salary Senior Vice President,Chief Financial Officer,Subsidiary Officer 47 621,154 Marie Huber Age Salary Senior Vice President,Secretary,General Counsel 53 389,462 Stephen Fisher Age Salary Senior Vice President,Chief Technology Officer 51 625,000 Key Financials (In USD as of 06/30/2016) Income Statement Revenue 8,788m Net Income 1,933m Address: 2065 Hamilton Avenue,San Jose, CA 95125 United States | Phone: 408 3767400 | Company Website: www.ebay.com Incorporated: September 1995 , CA, United States Reincorporated: April 1998 , DE, United States IRS Number: 770430924 CUSIP: 27864210 Auditor: PricewaterhouseCoopers LLP Legal Counsel: Fenwick & West LLP Transfer Agent: Computershare Shareowner Services, Pittsburgh, PA Country: United States Sector: Internet & Software Industry: Misc. general merchandise stores (SIC 5399) Industry: All Other General Merchandise Stores (NAICS 452990) Number of Employees: 11,600 (Approximate FullTime as of 12/31/2015) Number of Shareholders: 3,945 (approx.) (as of 01/27/2016) Market Cap: 36,444,733,320 Revenue: 8,788,000,000 Net Income: 1,933,000,000 EPS Basic: 1.65 EPS Diluted: 1.65 PE Ratio: 24.0896 eBay Inc. (NMS: EBAY) to Company Analysis List Recent Companies Company Details Executives Ownership Company Financials Reports Filings News Competitors Mergent Online Company Detail : eBay Inc. http://www.mergentonline.com.proxylibrary.ashford.edu/companydetail.php?compnumber=95547&pagetype=synopsis 2/3 Yesterday 5 Days 30 Days Close 32.28 32.13 31.39 Volume N/A 6,808,376.00 N/A 52 Week High/Low : 32.28 22.01 % Price Change (100 Days) : 32.51 200Day Moving Avg. : 25.77 Company News Corporate Events 10:21AM, 6 September 2016 Cash Piles at American Companies Are Shrinking Bloomberg Business 7:42AM, 6 September 2016 Report: Amazon lands one of eBay's top AI execs Retail Dive 6:57AM, 6 September 2016 UPDATE 1PayPal, MasterCard reach deal for store payments Netscape Internet Service 4:50AM, 6 September 2016 PayPal : Strikes Deal with MasterCard to Allow Payments in Stores 4Traders 4:21AM, 6 September 2016 Why Fintech Startups Might Not Want to Become Unicorns Bloomberg Business 12:21PM, 5 September 2016 Facebook Europe Executive Bonomo Said to Resign Amid Reshuffle Bloomberg Business 7:32AM, 4 September 2016 Reubens' Global Switch Says It's in Talks With Asian Investors Bloomberg Business 2:32PM, 2 September 2016 Amazon Poaches EBay's Head of Artificial Intelligence 4Traders 8:22AM, 2 September 2016 Tech Veteran Departs Silicon Valley's Grilled Cheese Play Bloomberg Business EPS from Continuing Operations 1.69 EPS Net Income Diluted 1.65 Revenue per Share 7.68 Balance Sheet Total Assets 19,993m Total Liabilities 13,540m Shareholders' Equity 6,453m Total Assets per Share 17.66 Net Assets per Share 5.70 Cash Flows Cash from Operations 3,130m Cash from Investing 3,164m Cash from Financing 2,891m Capital Expenditures 253m Cash Flow per Share 2.72 Please show calculations in explanation and answer
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