BUS 650 Week 6 Final Paper Evaluation of Corporate Performance - 2020 Ashford
Evaluation of Corporate Performance. Due by Day 7. The Final Paper 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 recommending whether or not to purchase the company stock.
The completed report should include:
• An introduction to the company, including background information.
A 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.
A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
o Financialleverage o Assetmanagement o Profitability
Calculate Return on Equity (ROE) using the DuPont system.
Assess management performance by calculating Economic V alue Added (EV A).
Evaluate 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.