Finc term paper

 

Term Paper

Term Paper

Write a 2-3 page research paper on the selected companies below. The 2-3 pages do not include the title page, graphs and references..

Company group:

· Home Depot and Lowe's

 

Project Assignment Using Coke and Pepsi as an Example:

Long time competitors in the soft drink industry, PepsiCo and Coca-Cola continue efforts to gain additional market share. Which do you prefer, Coke or Pepsi? Let’s take a look at these two companies from a financial perspective rather than our drink preference.

To learn more about PepsiCo and Coca-Cola Enterprises, download the latest PepsiCo 2014 Annual Report at: https://www.pepsico.com/docs/album/default-document-library/pepsico-2014-annual-report_final.pdf and the Coca-Cola 2014 Annual Report at http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-reportsannual:. Review the annual reports for general information.

Required:

1. Read -Understanding the Income Statement at: http://www.investopedia.com/articles/04/022504.asp

2. Read -Reading the Balance Sheet at: http://www.investopedia.com/articles/04/031004.asp

3. Compute- the following financial ratios for both companies and provide as an appendix to the required paper. If you need help understanding the meaning of the ratios or how to they are computed, go to: http://www.investopedia.com/university/ratios/

Liquidity measurement ratio: · Current ratio

Profitability indicator ratios:· Return on assets · Return on equity

Debt ratio: · Debt ratio

Operating performance ratio: · Fixed asset turnover ratio

Cash flow indicator ratio: · Dividend payout ratio

Investment valuation ratio: · Price / Earnings ratio

For each company and comparing the two, you are to write a (2-3) page report that answers the following:

1. Using the profitability and operating performance ratios, discuss what conclusions you can make about each company’s profits over the past three years. Support your conclusions. Which company is doing better, why or why not?

2. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders. Support your conclusions. Which company is doing better, why or why not?

The format of the report indicated below in “More on the Grading Criteria”.

NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.

Paper Grading Rubric

Criterion	Poor  (Below 70)	Fair (70-79)	Good (80-89)	Excellent (90-100)
Comprehension 30%	No understanding of the problem.	Little understanding of problem.	Considerable understanding of the problem.  All requirements of assignment are included.	Complete understanding of the problems.  All requirements are included in response.
Organization and Structure 15%	Information unorganized and not effectively structured.  Poor grammar.  Little or no evidence of preparation.	Information is somewhat organized.  Minimal or superficial preparation.	Information is well organized.  Adequate and reflective approach in preparation.	Information is logically and creatively organized.  Highly developed approach in preparation.
Company Research Review 20%	Did not participated in the developing the research paper and selected topics	Somewhat participated in the developing the research paper and selected topics	Was an active participant in developing the paper, doing the deep research and working with peer members to drive completion of a well researched paper.	Led and drove the discussion, the coordination, the research for the paper and helped motivate other members of the group meet their deadlines.
Content 35%	Information is missing or inaccurate.  No insight is provided by the student.	Content is not comprehensive.  Opinions are not well supported.	Content is accurate and opinions are stated and somewhat supported.	Content is accurate and shows acute insight.