FINANCIAL MANAGEMENT

PART l

FOR THIS ASSIGNMENT PLEASE USE THE CMPAGNY “SHERWIN-WILLIAMS”

In the Bruner text, carefully read Case 5: Business Performance Evaluation: Approaches for Thoughtful Forecasting on pages 89 to 102. This “case” is actually a note that “examines principles in the art and science of thoughtful financial forecasting for the business manager.”

The first part of the note discusses “Interpreting Financial Ratios.” For this assignment, search online for the 2018 annual report of a publicly traded company (you can choose any company you would like to know more about and/or that you think the class would like to know about). Use the financial statement data to in the annual report to fill in the following chart (you must compute these ratios for the noted years – round all values to one decimal place):

Ratio	2016	2017	2018
Total revenue growth rate
Gross profit margin
Net profit margin
Accounts receivable days
Inventory days
Accounts payable days
Asset turnover
Total capital turnover
ROA
ROE
ROC

Copy and paste your completed chart into the Word document. Discuss any ratios that show significant change over the period. Do the changes indicate potential strength or weakness? 

Next, what is your expected growth rate in sales and what is your expectation for the net profit margin for your chosen company for next year? What is your justification for those expectations?

This assignment should be at least 600 words.

PART ll

In the Bruner text, carefully read Case 10: Best Practices” in Estimating the Cost of Capital: An Update on pages 145 to 171. For this assignment, estimate the weighted average cost of capital for the company that you discussed in the previous assignment You must explain each part of your estimate and identify the source of any data that you use in creating your estimate in proper APA format.

This Assignment should be at least 600 words.