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Title: Business Initiative and Technology
Student Name:
University
BUS 100 - Enterprise Business Applications and Communications
Assignment 5: Financial Analysis and Investment Evaluation
Due Week 5 and worth 160 points
In Part LXXIX of your business plan, you will focus on financial analysis and investment evaluation to assess the
financial health of your organization, evaluate investment opportunities, and optimize capital allocation decisions.
Your objective is to develop a comprehensive financial analysis and investment evaluation framework that
supports strategic decision-making processes and enhances shareholder value.
Write a paper in which you:
1. Conduct a financial analysis to assess the financial performance, profitability, and liquidity of your
organization. Analyze financial statements such as income statements, balance sheets, and cash flow
statements to evaluate key financial metrics such as revenue growth, profit margins, return on investment
(ROI), and cash flow adequacy. Evaluate financial ratios such as liquidity ratios, solvency ratios, and
profitability ratios that measure financial health and performance.
2. Define financial analysis objectives, goals, and key performance indicators (KPIs) that align with
organizational objectives and support business growth and competitiveness. Establish clear, measurable,
and achievable financial targets such as revenue targets, profit targets, and cash flow targets. Develop
SMART (Specific, Measurable, Achievable, Relevant, Time-bound) financial objectives that provide
clear direction and focus for financial performance improvement initiatives.
3. Conduct an investment evaluation to assess investment opportunities, quantify investment risks, and
estimate investment returns. Analyze investment alternatives such as capital expenditures, mergers and
acquisitions, and strategic partnerships that support business growth and expansion. Evaluate investment
criteria such as payback period, net present value (NPV), internal rate of return (IRR), and return on
investment (ROI) that guide investment decision-making processes.
4. Develop a capital budgeting and project evaluation framework to prioritize capital investments, allocate
financial resources, and maximize long-term shareholder value. Analyze capital budgeting techniques
such as discounted cash flow (DCF) analysis, sensitivity analysis, and scenario analysis that assess
investment viability and risk-adjusted returns. Develop investment decision criteria, investment selection
criteria, and investment approval processes that ensure alignment with strategic objectives and financial
constraints.
5. Develop a risk management and risk mitigation strategy to identify, assess, and mitigate financial risks
that impact investment performance and organizational sustainability. Analyze financial risks such as
market risk, credit risk, liquidity risk, and operational risk that affect investment outcomes and financial
stability. Develop risk assessment methodologies, risk mitigation strategies, and risk monitoring
frameworks that minimize downside risks and preserve shareholder value.
6. Develop a capital structure and financing strategy to optimize capitalization, minimize financing costs,
and maintain financial flexibility within your organization. Analyze capital structure alternatives such as
debt financing, equity financing, and hybrid financing that balance financial leverage with risk tolerance.
Develop capital raising strategies, capital allocation frameworks, and capital structure policies that
optimize the cost of capital and enhance shareholder value.
7. Develop a dividend policy and shareholder value enhancement strategy to distribute profits, reward
shareholders, and maximize shareholder wealth. Analyze dividend payout ratios, dividend growth rates,
and dividend yield metrics that measure dividend policy effectiveness and shareholder returns. Develop
dividend distribution policies, dividend reinvestment plans, and shareholder engagement initiatives that
align with shareholder interests and corporate objectives.
Clickhereto view the grading rubric for this assignment.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and
writing skills, using the following rubric.
Points: 160 Assignment 5: Financial Analysis and Investment Evaluation
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Analyze the options
available for producing
the product or service.
Next, evaluate which of
the available options you
Did not submit or
incompletely
analyzed the
options available for
producing the
Partially analyzed
the options
available for
producing the
product or service.
Satisfactorily
analyzed the
options available for
producing the
product or service.
Thoroughly
analyzed the
options available for
producing the
product or service.
can take to streamline
operations.
Weight: 25%
product or service.
Did not submit or
incompletely
evaluated which of
the available
options you can
take to streamline
operations.
Partially evaluated
which of the
available options
you can take to
streamline
operations.
Satisfactorily
evaluated which of
the available
options you can
take to streamline
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