Question
This is the task at hand my plan is to analyze Starbucks and compare to Tim Horton. My challenge is just getting started it could
This is the task at hand my plan is to analyze Starbucks and compare to Tim Horton. My challenge is just getting started it could any two companies really I just need like a tmeplate to get me started. 1. Your chosen company (financial ratios and trend analysis) a. Using the data provided at the Yahoo! Finance site, use the ratios in the textbook and determine the status of your chosen company based on those ratios. Also, identify any trends you notice and what the impact might be if those trends continue. The ratios you will be reviewing are the same ratios; as you will find in your textbook. Note that some of these ratios may not be applicable to your company. Some ratios are specific to certain types of firms. Not all firms carry significant accounts receivable as an example. 2. A competitor in the same industry (financial ratios and trend analysis) a. Using the data provided at the site, use the ratios in the textbook and determine the status of your chosen competitor based on those ratios. Also, identify any trends you notice and what the impact might be if those trends continue. 3. The industry as a whole; how does your chosen company compare and what evaluations can you make (predict) for future financial success? a. Review industry data and determine where these two companies fit within that industry. Are they leaders/followers? What does the future hold for this industry? 4. Using your chosen company and the current conditions in the financial markets, assume the firm needs to raise a large amount of cash. Compare the choices of raising these funds in the capital market (selling new shares of stock) versus the bond market (debt financing), and make a decision as to what is best and why. Also, consider ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital. 5. Take one of the following positions and justify your decision: a. You are a banker who has been approached by this company to borrow a sum of money (you decide how much, and why). Based on the companys financials and its future business prospects, would you loan the money? Why or why not. b. You are an investor with a large sum of money (or a company looking for an investment), and buying either the company or shares of stock in the company is being considered. Determine, based on the companys financials and its future business prospects, whether you will invest in this company or not.
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