Determine return on equity using the dupont system

Assignment Help Corporate Finance
Reference no: EM131296697

Evaluation of Corporate Performance --- Amazon

The Final Paper will involve applying the concepts learned in class to an analysis of a Amazon 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 recommending whether or not to purchase the company stock.

Amazon annual Report

https://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual

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:

o Liquidity
o Financial leverage
o Asset management
o Profitability
o Market value

• Calculate Return on Equity (ROE) using the DuPont system.

• Assess management performance by calculating Economic Value Added (EVA).

• 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.

• 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 to 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 scholarly articles. Be sure to include links to websites that were used as references or to access company information.

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.
• Must include a separate title page with the following:

o Title of paper
o Student's name
o Course name and number
o Instructor's name
o 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.
• Must document all sources in APA style.
• Must include a separate reference page, formatted according to APA style.

Reference no: EM131296697

Questions Cloud

Estimates of a forward-looking taylor rule : Empirical estimates of a forward-looking Taylor rule show that policymakers in the 1950s raised nominal interest rates more than one-for-one with increases in expected inflation. Could someone please explain to me what this means?
A rectangular beam of width unity and length : Shear forces V support the beam at both ends.- List the six boundary conditions for this beam the stresses must satisfy.
What price would you bid if you must win the project : 1. What price would you bid if you must win the project? 2. What price would you bid if you want to maximize the expected value of the contribution from this contract? 3. Defend your answers with discussion, making any assumptions you feel are reaso..
What would you do now if you were rankin : What would you do now if you were Rankin?- How might you awaken more enthusiasm in your team for completing this project on time? Suggest specific steps.
Determine 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).
Tobin''s portfolio selection model : According to some economists, Tobin's portfolio selection model suers from the following defiencies: (a) it explains the allocation of wealth between assets, but it does not explain the demand for money;
What industry information helped you make your decision : What industry information helped you make your decision - such as competition, overall markets, and state of the economy? What are you assuming about the future?
What is meant by balanced growth : What effect do the various types of factor growth have on the growing nation's production frontier?- What is meant by balanced growth?
Equivalent uniform annual worth of machine : Maintenance costs are $200 and will be incurred every year beginning 5 years or 7 years from today with equal probability. If the market rate is 10%, what is the EXPECTED equivalent uniform annual worth of this machine?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Discuss briefly the financial market risks associated

Discuss briefly some of the financial market risks associated with the project. Consider: Interest Rates, Currency and Commodity Risks if any. How can these be hedged using and what financial instruments do you propose to use, if any.

  1the constant-growth-rate discounted dividend model as

1the constant-growth-rate discounted dividend model as described equation 9.5 on page 247 says thatp0 d1 k - g

  Sole proprietorship, partnership, and corporation forms

Discuss the primary differences between partnership, sole proprietorship, and corporation forms of business ownership?

  Background information during the carter administration

background information during the carter administration long-term us treasury yields exceeded 15 and short-term t-bills

  Estimate the cash outlays for charges

Estimate the amount of depreciation expense reported on Campbell's tax returns for each of the years 11,10, and 9. Use tax return of 34%

  Part a part a of this assignment requires an analysis of

part a part a of this assignment requires an analysis of certain aspects of brown ltdafter studying brown ltd answer

  Identify a company it may be your own identify the

identify a company. it may be your own. identify the corporate culture. is there a compelling case for culture change?

  Create a sales budget for the la babycakes store

Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter.

  How much will the yen cost in dollars

If the yen/dollar exchange rate is 125, how much will 25,000 yen cost in dollars? - If the dollar appreciates to 150 yen/dollar, how much will the 25,000 yen cost in dollars?

  Determine the nations gross domestic product

Determine the nation's gross domestic product and how would your answer change if the dollar amounts of imports and exports were reversed?

  Identify fluctuating fuel costs

You have been emplayed by American Airlines. Your primary task is to keep the Airline in Business & to ensure, you have to accomplish these 2 goals:

  1 identify the critical path and its activities for

1. identify the critical path and its activities for rockfest. how long does the project take what is the duration

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