Evaluation of
Corporate Performance
The Final Project 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 two fiscal years, assuming a 10% growth
rate in sales and Cost of Goods Sold (COGS) for each of the next two
years. - Complete 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). - Review of the soundness of the company’s financial
policies (e.g. capital structure, debt, leverage, dividend policy, etc.)
based on the material covered during class. - A synopsis of your findings, including your
recommendations and rationale for whether or not to purchase stock from
this company.
This report should be 15
– 20 pages long excluding title page and reference page(s) using APA 6th
edition formatting guidelines. Support your findings and recommendations
with evidence from at least five scholarly sources in addition to the annual
report; such as the textbook, industry reports, and articles from the Ashford
library. Be sure to include links to websites that were used as
references or to access company information.
Writing the Final Paper
The Final Paper:
- Must be 15 to 20 double-spaced pages in
length and formatted according to APA style as outlined in the approved
APA style guide. - Must include a cover page that includes:
– Title of paper
– Student’s name
– Course name and number
– Instructor’s name
– Date submitted - Must include an introductory paragraph with a succinct
thesis statement. - Must address the topic of the paper with critical
thought. - Must conclude with a restatement of the thesis and a
conclusion paragraph. - Must use at least five scholarly sources.
- Must use APA style as outlined in the approved APA
style guide to document all sources. - Must include, on the final page, a Reference Page that
is completed according to APA style as outlined in the approved APA style
guide.
