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FINC 620 Financial Management Final Paper




FINC 620 Financial Management Final Paper;*********PLEASE READ ALL THE INSTRUCTIONS CAREFULLY!;NO PLAGIARISM. I WILL USE A PLAGIARISM CHECK SOFTWARE TO CHECK THE COMPLETED WORK;This is a 12-a page (or more) RESEARCH (NOT ESSAY) paper and MUST BE formatted according to APA style.;1.);Research Paper;The objectives/purpose of the research paper project are to enable you to do a comprehensive financial analysis of a publicly traded corporation, and provide you with substantial information for you to make recommendations regarding investing in this corporation.;Your fina ncial analysis report will be driven by a rigorous ratio analysis, and aggressively supplemented with your written analysis, interpretation, and evaluation of the data.;Your research should be strategically driven by two probing questions;-Would you invest your financial capital in the selected firm as a shareholder?;-Would you invest your human and intellectual capital in the firm as an employee?;Steps in preparation of financial analysis report;1.);Select a publicly held company;2.);Select a benchmark firm to compare your company against. The benchmark firm is typically the largest competitor.;3.);Obtain the firm?s balance sheet, income statement, and statement of cash flows for;the past 5 years. Download or read the firm?s annual report.;4.) Go to:;Research EDGAR?s database for additional SEC report filings: 8-k, 10-Q.;4.);The following table is the type of Excel or Word table that should be used to gather and report your ratio and financial performance data. Note the 5 financial diagnostic categories that should be used in your analysis.;Financial diagnostic categories;Chosen company vs.;Benchmark competitor;1.) Liquidity of short-term assets;-Current ratio;-Cash ratio;-Quick ratio;-Current ratio;-Cash ratio;-Quick ratio;2.) Long-term debt-paying ability;-Debt ratio;-Debt-equity ratio;-Times interest earned;-Debt ratio;-Debt-equity ratio;-Times interest earned;3.) Profitability;-Net income/sales (profit margin);-Net income/assets (ROA);-Net income/shareholder equity (ROE);-Net income/sales (profit margin);-Net income/assets (ROA);-Net income/shareholder equity (ROE);4.) Asset utilization/ management efficiency;-Total asset turnover;-Inventory turnover measures;-Accounts receivable turnover;-Total asset turnover;-Inventory turnover measures;-Accounts receivable turnover;5.) Market measures;-Price/earnings ratio;-Earnings per common share;-Dividend payout;-Price/earnings ratio;-Earnings per common share;-Dividend payout;Use 2-3 ratios per diagnostic category. Place your ratio calculations in the table for your selected companies?primary company and benchmark competitor. Using 5 diagnostic categories, and 3 ratios to assess each category, results in 15 ratio measures per company that will be compared side by side.;6.) To validate your research, 5 years of data should be analyzed.;7.) The financial analysis report must be written properly. They must include a title page, a table of contents, and a reference page. For both midterm and final report, information sources from the web, etc. must be cited properly, using APA style.;This means that every table that you cut and pasted or typed from the web must have a source at the bottom of the table AND that citing must also be included in a reference page at the end of the report.;Your project should include;a.;An overview of the corporation.;i.;Provide general information regarding the type of business, products and/or services, location of headquarters, name of CEO, number of employees, and countries of operation, etc.;b.;The latest financial statements;i.;Get the income statement, balance sheet, cash flow statement, and the statement of owners? equity for the past fiscal year. Create Turnitin-friendly versions of the financial statements, do not just ?cut and paste? them in your report. Do not forget to cite the source under each statement.;ii.;If you cannot cut and paste them, you may have to type in the information in a table in your report.;c.;A summary of each financial statement;i.;Take each statement and state the key parts in words. Tell a story from each of the financial statements. For example, for the income statement, the story starts like, ?Total Revenues in 2010 were $10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profit margin of $2 billion, or 20 percent of total revenues?.After taking out interest and taxes from EBIT, the net income was $0.5 billion, or 5 percent of total revenues.?;d.;Ratio calculation (include 5 major types of ratios. Refer to chapter 3, Analysis of Financial Statements);i.;Organization of this section is based on the FIVE types of ratios listed in the text book. Calculate the ratios from the financial statements in part c above using Excel or your calculator and present them in a table.;ii.;Find industry financial ratios online (eg. and compare your corporation?s ratios to these industry ratios.;iii.;Present your results following the five types of ratios discussed in part d.;iv.;A table with both corporation and industry ratios is required;v.;e.;Discussion of key statistics provided by sources like Yahoo finance.;i.;There are many different other statistics available for your corporation. These include market value, beta, and diluted EPS, etc. Discuss some of the key statistics that you think can assist you to determine if this corporation is a good buy or sell.;f.;For you to decide if a corporation?s stock is a good buy or sell, you must forecast several key variables, including the stock price.;i.;Use historical prices (5 years of monthly data recommended) and forecast the stock price for the next year. Use regression analysis, and/or moving average, etc. to create your forecast.;ii.;Create a graph from the historical data and show your forecast on the same graph. You can add a trend line to the graph to help you with a forecast. Include the graph in your report.;iii.;You need to say specifically what the forecasted value of the stock price is.;iv.;You must address the question, ?Is this forecast reasonable?? Must you amend your analysis to get a more reasonable forecast?;g.;Other information pertinent to the corporation that could affect its future performance and stock price.;i.;This could include dividend policy, capital structure, bond ratings, expert opinions on TV, new projects, litigation, regulation, etc. Search for information on the web regarding this corporation. Look at company complaint blogs, etc.;h.;Recommendation regarding the future of this corporation.;i.;Is the stock a good buy, average buy, or a poor buy (implying a good sell)?;ii.;Include a justification of your recommendation based on your analysis and research.;Hewlett-Packard Company;3000 Hanover Street;Palo Alto, CA 94304;United States - Map;Phone: 650-857-1501;Website:;Details;Index Membership;N/A;Sector;Technology;Industry;Diversified Computer Systems;Full Time Employees;317,500;Business Summary;Hewlett-Packard Company, together with its subsidiaries, provides products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide. Its Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, tablets, retail point-of-sale (POS) systems, calculators and other related accessories, software, support, and services for the commercial and consumer markets. The company?s Printing segment offers consumer and commercial printer hardware, supplies, media, software and Web services, and scanning devices, as well as inkjet and printing solutions, laserjet and enterprise solutions, and graphics solutions. Its Enterprise Group segment provides industry standard servers, business critical systems, traditional and converged storage solutions, networking products comprising controllers/switches, routers, and wireless LAN access points, and technology consulting and support services focused on cloud, mobility, and data. The company?s Enterprise Services segment offers technology consulting, outsourcing, and support services to infrastructure, applications, and business process domains, and application and business services. Its Software segment provides enterprise information management solutions, such as data analytics, information governance, and digital marketing for structured and unstructured data, IT management software, and security intelligence/risk management solutions as software licenses and software-as-a-service. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services, and asset management services to enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. The company was founded in 1939 and is headquartered in Palo Alto, California.;Apple Inc.;1 Infinite Loop;Cupertino, CA 95014;United States - Map;Phone: 408-996-1010;Website:;Details;Index Membership;Nasdaq 100;Sector;Consumer Goods;Industry;Electronic Equipment;Full Time Employees;80,300;Business Summary;Apple Inc. and its wholly-owned subsidiaries design, manufacture, and market mobile communication and media devices, personal computers, and portable digital music players worldwide. It also sells software, services, peripherals, networking solutions, and third-party digital content and applications related to its products. The company offers iPhone, a line of smartphones that comprise a phone, music player, and Internet device, iPad, a line of multi-purpose tablets based on Apple?s iOS Multi-Touch operating system, Mac, a line of desktop and portable personal computers, and iPod, a line of portable digital music and media players, such as iPod touch, iPod nano, iPod shuffle, and iPod classic. It also provides Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and various accessories, service and support offerings, and manufactures the Apple LED Cinema Display and Thunderbolt Display. In addition, the company sells various other application software comprising Final Cut Pro, Logic Pro X, and its FileMaker Pro database software, as well as a range of Apple-branded and third-party Mac-compatible, and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, pointing devices, and various other computing products and supplies. Apple Inc. sells digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store, and its products through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. The company also sells a range of third-party products through its online and retail stores. It serves various consumers, small and mid-sized businesses, as well as education, enterprise, and government customers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.;Table of Content;Serial;Content;Page;A.;Overview of Apple Inc.;3;B.;Overview of Hewlett-Packard Company;4 to 5;C.;Financial Statements Summary as of 28 September 2013;5 to 9;D.;Ratio Analysis of Financial Statements;9 to 15;E.;Comparative Analysis with Major Competitor and Industry;15 to 17;F.;Discussion of Key Statistics from Yahoo! Finance;17 to 18;G.;Stock Price Forecast;18 to 19;H.;Price and Performance Sensitive Information;19 to 20;I.;Recommendation and Justification;20


Paper#77865 | Written in 18-Jul-2015

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