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FIN 550 Milestone Four Guidelines and Rubric Overview: For the final project, you will use this case study to prepare a financial analysis report for Home Depot Inc. You will include in your analysis the background calculations and managerial analysis for each of the following topics: time value of money, stock and bond valuation, and capital budgeting. You will also discuss macroeconomic variables that might impact the company’s financial decision making and strategic objectives. These topics will be covered over four milestones to be submitted throughout the course before you submit the final project. Note that while these elements may seem separate and unrelated, together they will present a well-rounded view of the company’s finances with regard to the topics. In Milestone Four, you will submit a draft of the Macroeconomic Items section of the final project, along with your supporting explanations. Prompt: Provide an explanation of the impact of external factors on the financial position of Home Depot. Use the designated tab in the Final Project Student Workbook to demonstrate the implications of interest rate changes on at least one of the calculations you performed in one of the earlier milestones. Specifically, the following critical elements must be addressed:

V. Macroeconomic Items: The CEO of the company is convinced that financial analysis should hinge only on what is happening internally within the company. Convince him otherwise based on the following:

A. Analyze the implications of interest rate changes on any of the calculations you performed. Be sure to substantiate your claims. B. How might an issue (negative or positive) within the overall stock market impact the company’s stock valuation numbers, other financial

variables, or its overall portfolio management? Be sure your response is supported by evidence. C. Analyze the impact of any external factor (i.e., external to the company) discussed throughout the course on the company’s financial position. Be

sure to justify your reasoning. Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document, not including your calculations, which should be completed in the Final Project Student Workbook. Use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.

Rubric

Critical Elements Proficient (100%) Needs Improvement (80%) Not Evident (0%) Value

Macroeconomic Items: Implications of Changes

Analyzes implications of interest rate changes, substantiating claims

Analyzes implications of interest rate changes, but response or substantiation is cursory or illogical

Does not analyze implications of interest rate changes

30

Macroeconomic Items: Stock Market

Assesses the impact of an issue within the overall stock market on the company’s stock valuation numbers or any other financial variable, supporting response with evidence

Assesses the impact of an issue within the overall stock market on the company’s stock valuation numbers or any other financial variable, but response is cursory, illogical, or weakly supported

Does not assess the impact of an issue within the overall stock market on the company’s stock valuation numbers or any other financial variable

30

Macroeconomic Items: External Factor

Analyzes the impact of a factor external to the company on the company’s financial position, justifying reasoning

Analyzes the impact of a factor external to the company on the company’s financial position, but response is cursory, illogical, or weakly supported

Does not analyze the impact of a factor external to the company on the company’s financial position

30

Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Earned Total 100%