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Finance Assignment




Question;Using;Bloomberg/Yahoo Finance/ Mergent or the company?s website, collect the;following information on the assigned company;PART A- COMPANY INFORMATION;Company nameBusiness descriptionIndustry and major competitorsKey management personnel - Chief Executive Officer (CEO), Chief;Financial Officer (CFO), Chief Operating Officer (COO), Vice Presidents of;Marketing, Management, Accounting, etc.Company standard industrial classification (SIC) code, major;products/services and markets and key industry trends and performance;statistics.Company stock symbol, stock exchange where the stock is traded;and company ownership (key investors and shareholders).Stock Exchange where the stock is traded.The company?s annual;financial statements, which include the income statement, balance sheet;and statements of cash flowsfor each of the last five (5);fiscal years (use year-end data). Provide the detailed income statement;balance sheet, and statement of cash flows (not summary reports).Financial ratios for the companyfor each of;the last five (5) fiscal years (use year-end data).Financial ratios forthe industry (industry ratio information can be found using the;internet, Value Line, etc.).;PART;B - Based upon the data collected in section A;complete the following;1.;A description of the company;defining its main and secondary lines of business, key management, stock;symbol, and SIC Code.;2.;Using income statements and;balance sheets for the firm, analyze the firm?s financial performance over the;last three years. The write-up should;include information on changes in sales revenue, and income, and highlight any;performance trends. The write-up should;also include information on the firm?s balance sheet, including any significant;changes in the firm?s asset composition, or capital structure (debt/equity;composition) and the reasons for the changes.;Trend, common size, and percent change analysis are all useful tools in;your analysis of the financial performance of the company.;3.;Analyze the firm?s statement of;cash flows for the most recent period and compare the firm?s cash flow;performance to the prior two periods.;4.;Using ratios collected, perform;a ratio analysis of the firm and its industry.;The ratio analysis should highlight trends of the company, and the strengths;and weaknesses of the company. Again;trend analysis is a useful tool in your analysis of the ratio performance of;the firm.;5.;Forecast;a five-year Balance Sheet and Income Statement for the company using each of;the methods listed below (a total of 3 Income Statements and 3 Balance Sheets). This is an External Funds Needed;Analysis. Specify how you will finance;(balance) the firm?s shortfall/surplus.;a.;Historical;growth rates;b.;Analyst;projected growth rates (You may use the;IBES consensus estimates from THOMSON ONE for the analyst estimate).;c.;Sustainable;growth rate;6.;Given;your financial forecast in B.5., generate a 5-year forecast for the following two;variables for your company (choose one;of the above forecasting methods);a.;The;free cash flow to the firm (FCFF).;b.;The;free cash flow to equity (FCFE).;Please;provide a hard copy (printed) of your report and a soft copy of the report on Canvas. Please make sure you keep a soft and hard;copy of your report for your records.;PART;C - Based;upon the data collected in section A and B, complete the following;1.;Using;monthly return data for the last five years for your company, compute the;following three variables;a.;The;beta for your company.;b.;An;average return on your company?s stock.;c.;The;standard deviation/stand alone risk for your company.;2.;Use;the data derived in C.1., compute the cost of equity for your company. Also;estimate your company?s WACC. Provide all your assumptions.;3.;Generate;a what-if analysis for the WACC based upon changes in the listed assumptions.;4.;Compute;the value of your company based on your analysis. Compare your value estimate;to the actual market value of your company (based on closing stock price) on Friday;April 19, 2013.;5.;Based upon your stock price;forecast for the company, provide an investment recommendation for the stock;and justify your recommendation.;6.;Complete;a report incorporating the work completed in Parts B and C. This report should be;type written and no more than eight (8) pages long. The write-up should incorporate the business;information collected, an analysis of past performance of the firm, and a;discussion of the projections and valuations generated in your analysis. Projections and other spreadsheet analysis;should not be included in the body of the report, but provided as an;exhibit. Please provide a hard copy (printed) of your report and a soft copy of;the report on Canvas. Please make sure;you keep a soft and hard copy of your report for your records.;PLEASE;ATTACH THE DATA COLLECTED IN SECTION A TO THE REPORT.


Paper#50135 | Written in 18-Jul-2015

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