Utilizing the internet, research the financial reporting packages of two publicly traded companies: AT&T and Verizon. Do a financial analysis of each company, including the development of the common size financial statements and financial ratios.

PROJECT GUIDELINES

Complete the following steps:

• Obtain the most recent annual report for AT&T and Verizon.
• Develop common size financial statements for the two companies for the most recent two years available.
• Calculate financial ratios for a two-year comparison. Be sure to select financial ratios that are relevant to the telecommunication industry. A minimum of five financial ratios must be presented. The financial ratios should be calculated; do not rely upon other finance websites to obtain the general financial ratios.

The analysis should include the following sections for each company:

• Company Background: Present an overview of each company's history, including key products/services and operations. Analyze and discuss the market valuation of the bonds and stocks issued by each company.

• Recent Merger and Acquisition (M&A) Activities: Evaluate the effect of interest rates and time value of money by presenting a summary of recent M&A activities for both companies. Summary should include a brief discussion of the financing tools used and the cost of capital for these M&A activities.

• Financial Statements and Common Size Statements: Evaluate and interpret each company's basic financial statements by presenting and discussing the common size financial statements including significant trends or variances. Calculate and discuss the two years of financial ratios.

• Overall Analysis: Evaluate each company's performance in managing its assets to generate the maximum value to shareholders. Using the information gathered, fully discuss the ways that each company's decision makers have considered ethical and legal concerns as well as the financial data in making policies and choosing a strategic direction.

After assessing each company separately, develop a conclusion that includes a comparison/contrast of the financial analysis results. Evaluate and compare the financial and economic strategic planning models within each organization, indicating how each company uses financial information to support its strategic direction. Be sure you can fully support your conclusion with reference to your analysis.