Week 5 – Final Paper

Evaluation of Corporate Performance

Pathbuilder is being used in this course and this assignment is currently locked. Prior to beginning work on this assignment you must complete the Ratio Analysis, Case A: Increasing Leverage and Return on Equity, Case B: Just-In-Time Inventory, Case C: Working Capital Analysis, Case D: Corporate Bond Ratings and Financial Ratios, Financial Statement Analysis, EVA Analysis, and DuPont Analysis modules in the RealizeIt platform. Once the modules are completed and this information has been transferred into the course gradebook this assignment will unlock and you will be able to submit your assignment through Waypoint. 

(Please note that some modules will have prerequisites that must be completed first. You are highly encouraged to start your RealizeIt work early in order to ensure that you have plenty of time to successfully complete all required modules prior to the due dates for your assigned work. If you do not complete any work in the RealizeIt platform, the grade returned from RealizeIt will be a Zero.)

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.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.