SUBMIT QUALITY WORK AFTER 24 HOURS ONLY.

Project Description

Fall 2016 FINC 330 Financial Report Project

Your Financial Research Report is worth 25% of the course grade.

The financial research project is assigned in class on the beginning of Week 1 (8/22/16) of the course and is due, submitted online via LEO, not later than the close of Week 7 (10/9/16). The purpose of this assignment is to test your ability to research, analyze and present financial information. You are required to research key financial data, analyze the information, apply the appropriate financial concepts and formulas and prepare a credible management level financial report addressing a specific request. The Financial Research Report must be posted in your LEO Student Assignments folder as an attachment(s) not later than (10/9/16). This report must be 8 -10 double-spaced typewritten pages, excluding any attached tables and graphs. Note, you are expected to adhere rigidly to this page limit. Plus or minus one page is acceptable however excess length is both discouraged and penalized as one objective of this project is your ability to condense the key information into a concise management report. It is suggested that you use references to attached enclosures and/or summary short tables to support your arguments within the body of the report.

Objective:

The specific objective of this graded written research project is to prepare an "executive level financial report" to the Chief Financial Officer (CFO) of New Technology Incorporated (NTI), a mythical company in which you are employed as a senior financial analyst. This report will pertain to a financial analysis of a publicly-traded company, MicroStrategy, Inc., a Vienna, Virginia headquartered corporation ( www.microstrategy.com ), which, in turn, will require you to undertake independent financial research (web-based or library), conduct a careful financial analysis, and apply the proper selection of key financial theories and formulas.

Situation:

You are a financial analyst with the mythical New Technology Incorporated (NTI); NTI is an established manufacturer of a line of fully-integrated wireless communication products, which services an international market. A competitive technical product evaluation has determined that MicroStrategy represents the best potential candidates for a long-term software security partnership with NTI. However, based on some serious general concerns about the fallout of companies in the software industry in general, the CFO has asked you to conduct a comparative financial analysis of MicroStrategy to determine if the company is financially sound. The cost of adopting a new software system is significant and any interruption in software or software support during the next few years would adversely affect NTI's performance and profit.

Specific Assignment:

The Specific questions you are to answer are: (1) “what is the relative financial viability of MicroStrategy? And (2) is MicroStrategy recommended from the financial standpoint for a partnership?” This assignment requires you to research, analyze, and prepare a report for the CFO on the actual financial performance of MicroStrategy for the last three years. Your report is to consist of four parts:

(1) An evaluation of MicroStrategy’s income statement trends for the last three years. (2) An evaluation of MicroStrategy’s Balance Sheet trends for the last three years. (3) An evaluation of MicroStrategy’s cash flow trends for the last three years. (4) An evaluation of MicroStrategy’s key Financial Ratios trends for the last three years.

These evaluations are to be followed by (5) A specific recommendation with supporting rationale as to MicroStrategy’s financial suitability for a long term software partnership with NIT. To assist you in your task, the CFO has provided the following general guidance: She views it very important to identify and evaluate the MicroStrategy’s trends over the last three years in the following financial areas: Annual Balance Sheets for the last three years.

 Annual Income Statements for the last three years.

 Annual Cash Flow Statements for the last three years

 Annual Financial ratios compared to industry averages Your primary source of information for this effort should be

 MicroStrategy Annual reports, 10K SEC Reports

Using the above financial research information, develop an evaluation of the financial performance of MicroStrategy’s using the rubric provided in the syllabus. You can guide on the rubric for an outline of your report format.

The Financial report must be posted to your LEO Student Assignment folder as attachments. The attachments are limited to a maximum two files in either doc, docx, xls, xlsx, or rtf formats. All OTHER FORMATS ARE NOT ACCEPTABLE, and will not be reviewed and graded. Pdf. files will not be accepted or graded. All work, except supporting attachments, must be word processed; handwritten and scanned work will not be accepted and graded. This report is must be researched, developed and prepared by you. All questions related to this assignment, should be referred to the mythical NTI CFO (i.e., your instructor).

Evaluation Rubric for FINC 330Financial Research Project Report

FINANCIAL PERFORMANCE ANALYSIS 85% of Grade

Criteria 0 to 49 %

Credit

50% to 69%

Credit

70 % to 79%

Credit

80% to 89%

Credit 90% to Full Credit

1. A Financial analysis

of the MicroStrategy

Income Statement, 3-

year trends

(15 % of Grade)

Virtually no effort

to develop an

income statement

trend analysis.

Addressed

essentially no key

items. Not worthy

of credit.

Only a superficial

effort to develop

an income

statement trend

analysis. Missed

many key items.

The report

contains some

Income

statement trend

analysis but

requires more

development.

Covered Some

key items.

Good effort is

made to develop a

functional income

statement trend

analysis. Covered

most key items.

An excellent and very

thorough development

and articulation of an

income statement

trend analysis

Covered all key items.

2. A Financial analysis

of the MicroStrategy

Balance Sheet; 3- year

trends

(15 % of Grade)

Virtually no effort

to develop a

balance sheet

trend analysis.

Addressed

essentially no key

items. Not worthy

of credit.

Only a superficial

effort to develop a

balance sheet

trend analysis.

Missed many key

items

The report

contains some

balance sheet

trend analysis

but requires

more

development.

Covered Some

key items

Good effort is

made to develop a

balance sheet trend

analysis. Covered

most key items.

An excellent and very

thorough development

and articulation of a

balance sheet trend

analysis. Covered all

key items.

3. A Financial analysis

of the MicroStrategy

current cash flow, 3

year trends

(20 % of Grade)

Virtually no effort

to develop a cash

flow analysis with

trends. Addressed

essentially no key

items. Not worthy

of credit.

Only a superficial

effort to develop a

cash flow analysis

with trends.

Missed many key

items

The report

contains some

cash flow

analysis with

trends but

requires more

development.

Covered Some

key items.

Good effort is

made to develop

and explain a cash

flow analysis with

trends. Covered

most key items.

An excellent and very

thorough development

and articulation of a

cash flow analysis and

three year trends.

Covered all key items.

4. A financial ratio 3

year trend analysis of

the MicroStrategy key

financial ratios

compared to industry

Standards

(20 % of Grade)

Virtually no effort

to develop

financial a ratio

trends analysis.

Addressed

essentially no key

ratios. Not worthy

of credit.

Minimal effort to

develop a

financial ratio

trends analysis.

Missed many key

ratios.

Some effort

made to develop

a financial ratio

trends analysis,

however, the

result are not

fully explained.

Covered Some

key ratios

A good effort to

develop a financial

ratio trends

analysis and the

result are well

explained. Covered

most key ratios

An excellent and

successful effort to

develop a financial

ratio trends analysis

with a very clear

interpretation of

financial ratio results.

Covered all key ratios

5. Present a specific

recommendation, with

supporting rationale as

to the financial strength

of MicroStrategy

(15 % of Grade)

No clear concise

specific financial

recommendation,

or little or no solid

supporting

rationale for the

recommendation

A specific

recommendation

is made however

the supporting

rational is weak

and lacking

credibility.

A specific

recommendation

is made however

the supporting

rational has

several

significant

omissions or

errors.

A specific

recommendation is

made and the

supporting rational

is generally

complete and

sound

A specific

recommendation is

made and the

supporting rational is

complete, financially

sound and compelling

PRESENTATION OF PAPER AND

WRITING 15% of grade

6. Organization, format

and presentation of

paper to include proper

grammar and

punctuation

(5 % of Grade)

There appears to

be no logical

organization of

the paper's

contents

Presentation has

numerous

blemishes and

exhibits a general

lack of

organization

Paper has some

blemishes in

presentation and

exhibits some

weaknesses in

organization

Paper is neatly

presented without

major blemishes

and is generally

well-organized

Paper is extremely

neat and has no

blemishes; its

organization is

outstanding and very

easily followed

7. Use of tables, figures

and other graphics to

summarize and support

the analysis presented

in the paper

(5 % of Grade)

Use of tables,

figures and other

graphics in

support of paper

is unworthy of

credit

Tables, figures

and other graphics

do not provide

much support for

the paper; they

may be

incomplete

contain errors, or

have inadequate

labels;

Tables, figures

and other

graphics provide

marginal support

for the paper;

some labels may

be incomplete;

there may be

some omissions/

errors

Tables, figures and

other graphics are

descriptive and

provide solid

support for the

paper; they are

properly labeled

and essentially

complete

Tables, figures and

other graphics are

very descriptive and

provide exceptionally

strong support for the

paper; there are no

errors in labels or

omissions errors

8. Research Sources

and Significance of

Research Information

and Data, Use of APA

Citation

(5 % of Grade)

No obvious effort

to use

professional

supporting

research sources

Little effort made

to use appropriate

professional

supporting

research sources,

which may be

accompanied by

inadequate

documentation

Some effort to

identify and use

appropriate and

professional and

supporting

research sources;

with some

documentation

Good effort to

identify and use

appropriate and

professional and

supporting research

sources;

appropriate and

professional use of

APA citation

Excellent and

successful effort to

identify and use

appropriate and

professional research

sources including

Library Search

Engines, Websites,

S&P, SEC, stock

exchanges,

Morningstar, NYSE,

Competitors, 10K

Report, analyst

reports, news releases,

articles, etc.;

appropriate and

accurate

documentation