Calculate return on equity using the dupont system

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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. (Walmart ) Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.

  • The completed report should include:An introduction to the company, including background information.
  • A 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.
  • A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
  1. Liquidity
  2. Financial leverage
  3. Asset management
  4. Profitability
  5. Market value
  6. Calculate Return on Equity (ROE) using the DuPont system.
  7. Assess management performance by calculating Economic Value Added (EVA).
  8. Evaluate the soundness of the company's financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.

The Final Paper

  • Must be 15 to 20 double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).

Reference no: EM132427658

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