Finance analysis ( writing )

FIN 3014 — PRINCIPLES OF BUSINESS FINANCE LAB

Final Project

Due Date: Week of April 24 to 28, 2017

No late assignments will be accepted. Turning in this assignment gives you the opportunity to receive

valuable feedback for completing future assignments. Be sure to save your work.

Goals for this assignment:

 Prepare an executive company analysis

Required:

1 page, single-spaced executive summary regarding the company you have been following.

Graph of stock returns from Assignment 1: Stock Plot Return

Graph of Beta from Assignment 2: Beta Calculation

Financial Information from Assignment 3: Financial Statement Analysis. The information required is a table

with financial statement information for the past 3 years: net income, equity, sales, assets, current assets,

current liabilities, inventory and cash. And a table with DuPont and Liquidity Analysis. What needs to be

included in this table are ROE, NI/Sales, Sales/Assets, Assets/Equity, and check=

NI/Sales*Sales/Assets*Assets/Equity. The Liquidity Analysis needs to include current ratio, quick ratio and

cash ratio.

Executive Summary

In your executive summary combine information from your analyses in the three prior assignments. Discuss

whether the return on your stock varied significantly from S&P500, whether the return was higher or lower

and whether the returns were riskier (more variable) than S&P500. Using the beta you calculated, explain

how risky your stock is relative to the S&P500. Compare the beta that you calculate with the beta that is

provided on the http://finance.yahoo.com website (or some alternative source) for your stock. If they differ,

why do you think this might be the case? Make sure to include the beta gathered from the internet.

Also, discuss the financial outlook. Has the company drastically increased or decreased its use of debt? Has

the company’s liquidity position changed over the three years? Has ROE been rising or falling? If so, what

has contributed to this change? What trends do you see developing in the data? Do you see any major

changes in the financial status of the company over the time period?

Grading Rubric

Graded Component Maximum Points

Accuracy and proper labels of stock return chart 5 points

Accuracy and proper labels of beta chart and calculation 5 points 5

Accuracy of financial ratios 5 points

Quality of executive summary 10 points

Total 25 points