I need help with my assignment 2 for my Financial Managment 11

531 – Assignment 2 (1214) Page 1 of 3

JWI 531: Financial Management II

Assignment 2

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class.

Assignment 2: Performance Management and Valuation

Due Week 6, Sunday (18% of final grade)

The risk analysis work you did in the first assignment was a great start. It helped to paint a picture of

where NVIDIA (NASDAQ: NVDA) and Intel (NASDAQ: INTC) are in their corporate lifecycles, the threats

and opportunities each faces, and the defensibility of their economic moats – a metaphor that Buffett loves

to use.

In this assignment, you will continue your analysis by comparing key performance management metrics of

our two companies, identifying areas of relative strength and weakness, and suggesting ways that each

company could improve, thereby increasing its valuation. To do this, you will examine trends in order to

identify variances and comparisons to: (1) establish benchmarks, (2) identify best practices, and (3) look

for signs of superior performance. This analysis is critical in determining the value of each company, as

well as evaluating whether potential acquisition or merger opportunities exist which could create greater

value and synergies than those of operating the companies as separate entities.

Instructions

To prepare, reread the Morningstar Analyst’s Report and the most recent annual reports for both

companies with a particular focus on the Income Statement and Statement of Cash Flows.

A. Complete the Assignment 2 Worksheet to compare key performance metrics and ratios for both

companies in order to see how performance can be impacted by manipulating certain financial

levers. The guidance for this is found on pages 83-106 of The CFO Guidebook.

B. Summarize your Analysis and Recommendations by answering the following questions:

i. Performance Metrics:

a. Which company is a more efficient generator of income?

b. Which company is growing faster?

c. Using financial health ratios, which company is more profitable?

d. Which company has stronger valuation ratios?

e. Overall, which is the better run company and why?

ii. Merger Synergies:

a. If there was an acquisition, which company is the most likely acquirer? Why?

b. Would you recommend a merger or acquisition to increase the moat strength of the

combined companies? Why or why not?

• If you support a merger or acquisition, identify 3 performance metrics that could

be improved by a merger and explain how they would be improved. Guidance for

this is found on pages 107-117 of The CFO Guidebook.

531 – Assignment 2 (1214) Page 2 of 3

JWI 531: Financial Management II

Assignment 2

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class.

• If you do not support a merger or acquisition, explain your rationale and why the

value of each company is best preserved/increased by remaining separate. The

guidance for this is found on pages 117-123 of The CFO Guidebook.

Submission Requirements

A. Complete and submit the Assignment 2 Worksheet component of the Workbook, along with your

written work for Part B, through the assignment link in Blackboard.

B. Format your written responses for Analysis and Recommendation as follows:

• Typed, double-spaced, professional font (size 10-12), including headings and subheadings (to

identify main topics and subtopics), with one-inch margins on all sides.

• References must be included and provide appropriate information that enables the reader to

locate the original source.

o Application and analysis of course materials and resources is expected.

o At least one additional source beyond the course materials must be cited to support

your analysis and recommendations.

• Include a cover page containing the title of the assignment, your name, the professor’s name,

the course title, and the date.

• The maximum length is 4 pages, excluding your cover page, completed worksheets, and

reference list.

531 – Assignment 2 (1214) Page 3 of 3

JWI 531: Financial Management II

Assignment 2

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class.

RUBRIC

Weight: 18% of Course Grade

Assignment 2:

Performance Management and Valuation

CRITERIA Unsatisfactory Low Pass Pass High Pass Honors

1. Complete the assignment worksheet

Weight: 30%

Did not submit worksheet or had fewer than 60% correct data sets entered.

Submitted worksheet had between 60% and 69% correct data sets.

Submitted worksheet had between 70% and 79% correct data sets.

Submitted worksheet had between 80% and 89% correct data sets.

Submitted worksheet had 90% or higher correct data sets.

2. Present synopsis of data

Weight: 30%

Synopsis was missing, incomplete, inaccurate, or did not align with data.

Synopsis was overly simplistic; restated the data, but did not provide a coherent overview.

Synopsis was good; provided general snapshot of key data, but did not focus on the most critical elements.

Synopsis was very good; focused on the most critical elements with only minor elements unclear/missing.

Data synopsis was excellent; accurately highlighted key data presented in both annual reports and third- party sources.

3. Present and defend sound recommended finance strategies

Weight: 30%

Recommended strategies were missing, superficial, and/or were not supported by data and analysis. No options were presented.

Recommended strategies were basic or were not supported by data and analysis or tied to desired outcomes. Made minimal reference to options, but did not explain why these were not recommended.

Recommended strategies were good, but lacked clarity on how they could be implemented to drive outcomes. Addressed other options, but was unclear why these were not chosen.

Presented and defended very good finance strategies; solid connection to core finance principles and to real-world circumstances. Very good consideration of viable options with good rationale for why options were not chosen.

Presented and defended excellent finance strategies; exemplary connection to core finance principles and to real-world circumstances. Excellent consideration of viable options with very clear rationale for why options were not chosen.

4. Include appropriate citations and use professional writing standards

Weight: 10%

No citations provided and/or references to course materials were missing or did not support key content in submission; numerous writing mistakes.

Included some citations and references to course materials, but failed to cite for several key references; contained distracting grammatical or formatting errors.

Citations and references to both course materials and additional sources were properly documented; contained some grammatical and formatting errors.

Citations and references to both course materials and additional sources were properly documented; contained minor grammatical and formatting errors.

Citations and references to both course materials and additional sources were properly documented; free from grammatical and formatting errors; adhered to maximum length.