Bus650 Managerial Finance Evaluation of Corporate Performance

Guidance for paper

Final Paper: Evaluation of Corporate Performance: The Final Project will involve applying the

concepts learned in class to an analysis of a company using data from its annual report. Using the

concepts from this course, you will analyze the strengths and weaknesses of the company and

write a report either recommending or not recommending purchase of the company stock. The

completed report should include:

An introduction to the company, including background information.

A complete and thorough financial statement review.

Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal

years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next

two years.

Complete ratio analysis for the last fiscal year using at least two ratios from each of the

following categories:

a. Liquidity

b. Financial leverage

c. Asset management

d. Profitability

e. Market value

Calculate Return on Equity (ROE) using the DuPont system.

Assess management performance by calculating Economic Value Added (EVA).

Review of the soundness of the company’s financial policies (e.g. capital structure, debt,

leverage, dividend policy, etc.) based on the material covered during class.

A synopsis of your findings, including your recommendations and rationale for whether or not to

purchase stock from this company.

This report should be 15 – 20 pages long excluding title page and reference page(s) using APA

6th edition formatting guidelines. Support your findings and recommendations with evidence

from at least five scholarly sources in addition to the annual report; such as the textbook,

industry reports, and articles from the library. Be sure to include links to websites that were used

as references or to access company information.