Financial analysis

Unit 9 [MT482: Financial Statement Analysis]

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Assignment Details and Rubric

Case Study Assignment: Comprehensive Financial Analysis Case

In this Assignment, you will dig deep into the financial statements of a company selected by your instructor. You will analyze the company’s past financial performance to help you forecast their future business, profitability, and cash flow. You will use these results to forecast the value of the company; what YOU think the company is actually worth today. You will compare your value to the current stock price, explaining any differences.

This is how decisions to buy and sell stock, and to buy and sell companies are made every day all over the world. The nightly business news is full of the “buy, sell, and hold” recommendations derived from analysis like this. Bet those jobs pay very nicely, don’t you!

Locate the Comprehensive Financial Analysis Case CC-1 on page 692 in your text. Be sure to submit thoughtful and substantial answers to the questions following each case. Include the elements detailed in the Rubric below.

This is a challenging activity. You should prepare to spend substantial time working on your response.

Directions for Submitting Your Project

Before you submit your project, you should save your work on your computer in a location, and with a name, that you will remember. Make sure your project is in the appropriate format (Word, Excel, PowerPoint, or other); then, when you are ready, you may submit on the Dropbox page.

MT482 – Unit 9 Final Project: Comprehensive Case Analysis

Content, Analysis, and Effective Writing Skills Points Possible

Points Earned

Provides an executive summary of the company and its industry. 6

Detailed evaluation of:

Short-term liquidity (current debt-paying ability). 2

Cash forecasting and pro forma analysis. 2

Unit 9 [MT482: Financial Statement Analysis]

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Capital structure and solvency. 2

Return on invested capital. 2

Asset turnover (utilization). 2

Profitability and equity analysis. 2

Comments on the usefulness of the financial statements of this company for your analysis. 4

Discusses how accounting principles used in the financial statements affect your analytical measures. 4

Prepares a forecast of the income statement, balance sheet, and statement of cash flows for a five-year horizon and a terminal year in Year 6.

12

Estimates the value of your company’s common stock per share using the valuation analysis and procedures described in the Comprehensive Case.

12

Responds to all questions exhibiting strong critical thinking and appropriate analysis. 30

Sentences are clear, concise, and direct; tone is appropriate. Grammatical skills are strong with almost no errors per page. Paper follows APA format and follows the criteria given:

• Cover page with your name, course number, your instructor, date, subject, a brief statement that you (and you alone) produced the paper, and a citation of all references that are mentioned in your statement.

• Executive Summary (max. ¾ page in Bold) • Table of Contents • Introduction • Body • Conclusion and Recommendation(s) • References

20

Total Points 100