Compute the return on equity using the dupont system

Assignment Help Corporate Finance
Reference no: EM131289727

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. Include in cite quotations.

Reference no: EM131289727

Questions Cloud

Summarize the historical beginnings of the juvenile justice : Summarize the historical beginnings of the juvenile justice system. How have U.S. Supreme Court decisions been especially influential in the juvenile courts?
Prioritize your threats based on their risk value : Define who would be included in the assessment of the database environment - Identify the assets that you are protecting and define the threats you are protecting yourself against.
Corruptions perceptions index : Corruptions Perceptions Index. Use the data fromTransparency International ( http://www.transparency.org/) to compare three countries: One in the top 20, one in the middle of the rankings, and one in the bottom 20. What causes the countries to ear..
Amount of the late filing and late payment penalties : Determine the amount of the late filing and late payment penalties that apply for the following taxpayers.
Compute the return on equity using the dupont system : Calculate Return on Equity (ROE) using the DuPont system. Assess management performance by calculating Economic Value Added (EVA).
Discuss the four marketing management functions : Find two examples from your country illustrating department organization and featuring specific adaptations related to culture or media mix.
Calculated gross tax liability-what is net tax due or refund : This year Luke has calculated his gross tax liability at $1,800. Luke is entitled to a $2,400 nonrefundable personal tax credit, a $1,500 business tax credit, and a $600 refundable personal tax credit. In addition, Luke has had $2,300 of income taxes..
Market expansion strategy pc makers are currently pursuing : Explain which product/market expansion grid strategy PC-makers are currently pursuing to deal with the threat of post-PC devices. Is this a smart strategy?
What skills would you start to teach first : Based on the goals that Julia's parents have for her, what skills would you start to teach first? How could school-based instruction assist in developing functional community and domestic skills?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd