Accounting project

Financial Analysis Project

PART FOUR – DISCUSSION & ANALYSIS

1. THE NEAR FUTURE

Refer back to your STOCK PRICE LOG (page 8). Determine the buy-and-hold return of your company’s stock, its competitor & for the Dow Jones Industrial Average* in the same period (September 16 to November 25, 2016). *You can find Dow Jones performance on “finance.google.com” or “finance.yahoo.com”

Calculate the return simply as follows (ignoring any dividend payments, and present it in percentage):

(Price on Nov 25- Price on Sept 16)/ Price on Sept 16 = Buy-and-Hold Return COMPANY:_______________ COMPETITOR:______________ DOW JONES:______________ Did the company outperform its competitor? Did it outperform the Dow Jones?

After tracking the stock price for the last 11 weeks for this Financial Analysis Project in addition to the last 60 months for the Information Systems Deliverable and using the calculations you performed above, you have an idea about the price and return of your company’s stock. Using this information along with your assessment of the company’s financial performance as judged by cash flow, revenues, operating income, new products and all your other information, make a short-term prediction for your company. Short-term prediction reflects your prediction of the company in one year, i.e. “We expect this company to be performing better or worse and why?” The “why” needs to be in detail and supported using the results of the Horizontal Analysis and the Ratio Analysis. The comments should be about ONE-HALF to ONE page.

**Attach a copy of the Scatter Plot (with text) you completed for Information Systems to the end of this project.

2. LONG-TERMPREDICTIONS&FINALOBSERVATIONS

Long-term prediction reflects your prediction of the company in 2-5 years. Your long term response ... “In 2-5 years we expect this company to be performing better or worse and why?” On the whole, how has it done and how do you think it will perform in the future, in terms of earnings, cash flows, and any other metric you deem important, such as product innovations, etc.? This part needs to be at least three substantive paragraphs, and it should draw together all the analysis from the other steps. The comments should be about TWO pages.