Financial analysis of publicly-held company

Assignment Help Financial Management
Reference no: EM131192549

You are required to complete a financial statement analysis project. This project consists of the following parts; Part A: Financial analysis of a publicly-held company. We will use Ford’s latest consolidated and segment financial statements (form 10K) as filed with the SEC. You will calculate the current ratio and profit margin for the company as a whole. You will also answer general questions relating to Ford’s business operations. Part B: Discussion of risks. You will search Ford’s form 10K and identify three majors risks identified by the company. You will also assess the company’s market share for automobiles. You will determine the company’s growth rate of EPS or dividends. Part C: Discussion of Ford’s capital structure. You will review Ford’s consolidated financial statements. You will calculate the company’s debt/equity ratio and the earnings per share. You will also determine the company’s return on investment and the weighted average cost of capital. Part D: Discussion of Free Cash Flow. You will determine Ford’s consolidated free cash flow. In this part, you will make a prediction as to what the company’s stock price would be in three (3) months. You will also review analysts’ estimates and predictions for the past year. Part E: An investment recommendation. You will answer questions relating to whether the company maximizing the wealth of its shareholders? If not, what can they do to achieve this result? You will review your calculations and discussion of the following 6 ratios and financial measures: Current Ratio, Debt/Equity Ratio, Return on Investment, Earnings per Share, Profit Margin and Free Cash Flow. You will conclude your analysis with other observations on the firm and whether your analysis differs from other analyses that are available. You will indicate if there is any other measure you would want in order to make an investment recommendation. Finally, you will make an Investment Recommendation. For this recommendation, assume you have been asked by an investor, age 35, who wishes to invest in conservative stocks that will provide some income now but is mainly interested in growth over the next ten (10) years. Would Ford meet this investor’s investment goals? Defend your analysis in 2,000 to 2,500 words written in APA style and cite your sources in a reference list.

Reference no: EM131192549

Questions Cloud

Mutually exclusive projects-calculate the payback period : Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$17,000 –$20,000 1 10,500 11,500 2 7,000 8,000 3 2,600 7,000 a-1. Calculate the payback period for each project.  Payback period Project A years Projec..
Planning its spring awards dinner as fundraising event : Millbridge Animal Protective Services (MAPS) is planning its spring awards dinner as a fundraising event. It is planning to charge each attendee $150. Feast Hall, the site of the dinner, will charge MAPS $5,000 for the use of its posh VIP Room and $5..
Saving for your retirement by depositing : Suppose you begin saving for your retirement by depositing $2000 per year in an IRA. If the interest rate is 12.3%, how much will you have in 35 years if each deposit occurs at the end of the year? How much if you make yearly deposits beginning today..
Thinking about bringing new exhibit to the center : The Center for Shaker Crafts (CSC) is thinking about bringing a new exhibit to the Center. It will cost the Center $30,000 to bring the exhibit to town, an additional $12,000 for lighting and security equipment, and $5,500 for an insurance policy.
Financial analysis of publicly-held company : You are required to complete a financial statement analysis project. This project consists of the following parts; Part A: Financial analysis of a publicly-held company. We will use Ford’s latest consolidated and segment financial statements (form 10..
According to the pure expectations theory of term structure : According to the pure expectations theory of the term structure:
The term structure of interest rates : The term structure of interest rates is:
Statement of retained earnings : Statement of Retained Earnings Night Scapes, Corp. began the year 2008 with $25 million in retained earnings. The firm suffered a net loss of $3.5 million in 2008 and yet paid $2.15 million to its preferred stockholders and $1.15 million to its commo..
Operating cash flow and investment in operating capital : Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut earned an EBIT of $23.05 million, paid taxes of $3.95 million, and its depreciation ex..

Reviews

Write a Review

Financial Management Questions & Answers

  Footnote for danerys year-end financial statements

Write the footnote for Danerys' year-end financial statements (assume 12/31/13 year-end) related to goodwill and other intangible assets - Determine the appropriate acquisition-date journal entry for the acquisition.

  What alpha do investors in fund expect to receive

Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that her skills are spread too thin, so she cannot add value, and her alpha is zero.  What alpha do investors in Davita’s fund..

  Compute the percentage total return

Suppose a stock had an initial price of $91 per share, paid a dividend of $2.20 per share during the year, and had an ending share price of $75.00. Compute the percentage total return.

  What was arithmetic average return on crash-n-burn stock

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 18 percent, –3 percent, 16 percent, 11 percent, and 10 percent. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period..

  What will be the firms cash cycle

Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

  At current prices and cost of capital

At current prices and a 13% cost of capital, a project's NPV is $100,000. By what minimum amount must the initial cost of the project decrease (revenues will be unchanged) before you would wait 2 years to invest?

  Issue a zero coupon bond at an annual interest rate

Assume that HOS could issue a zero coupon bond at an annual interest rate of 4 percent with semi annual compounding for 20 years. If HOS receives $2,264.45 for the bond, how much would it have to pay at the maturity date?

  Free cash flow valuation model discounts free cash flows

The free cash flow valuation model discounts free cash flows by the required return on equity. The free cash flow valuation model can be used to find the value of a division. An important step in applying the free cash flow valuation model is forecas..

  Review the information the company has provided including

assignment 2 corporate governance and final project week 5 relationships and financial performance company investment

  Generates after-tax cash flows

An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $70.00 in Year 2, and $133.00 in Year 3. The required rate of return is 20 percent. The net present value is

  About the market value of debt

You recently completed your undergraduate degree in Business Administration, majoring in Finance, at University of Scranton. You are now working at PPL Corporation, at their corporate headquarters, in Allentown, PA. Your first assignment is to estima..

  What is primroses cash conversion cycle

Primrose Corp has $17 million of sales, $3 million of inventories, $4 million of receivables, and $1 million of payables. Its cost of goods sold is 65% of sales, and it finances working capital with bank loans at an 9% rate. What is Primrose's cash c..

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