Bus 401 evaluation of corporate performance

 Evaluation of Corporate Performance 

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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 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.

 Research Tip: The “Mergent” database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database enter the Ashford Library and select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section “M” for “Mergent”. For help with using Mergent, use Mergent Online Quick Tips.

For help with reading an annual report access this handy guide from Money Chimp.

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. 

The paper

  • Must be eight to ten double-spaced pages in length (not      including title and references pages) and formatted according to APA style      as outlined in the Ashford Writing Center.
  • Must include a separate title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must begin with an introductory paragraph that has a      succinct thesis statement.
  • Must address the topic of the paper with critical      thought.
  • Must end with a conclusion that reaffirms your thesis.
  • Must use at least five scholarly sources, such as the      textbook, industry reports, and articles from the Ashford University      library to support your findings and recommendations.
  • Must document all sources in APA style as outlined in      the Ashford Writing Center.
  • Must include a separate references page that is formatted      according to APA style as outlined in the Ashford Writing Center.