Evaluation of Corporate Performance
The Final Project 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 either recommending or not recommending purchase of the company stock.
Research Tip: The “Mergent†database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database enter the Ashford Library and select “Find Articles and More†in the top menu panel. Next, select “Databases A-Z†and go to section “M†for “Mergentâ€Â. For help with using Mergent, use Mergent Online Quick Tips.
For help with reading an annual report access this handy guide from Money Chimp.
The completed report should include:
1. An introduction to the company, including background information.
2. A complete and thorough financial statement review.
3. Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
4. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
a. Liquidity
b. Financial leverage
c. Asset management
d. Profitability
e. Market value
5. A calculation of Return on Equity (ROE) using the DuPont system.
6. Assessment of management performance by calculating Economic Value Added (EVA).
7. A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
This report should be eight to ten pages long (excluding title page and reference pages) using APA 6th edition formatting guidelines. Support your findings and recommendations with evidence from at least five scholarly resources, such as the textbook, industry reports, and articles from the Ashford University library.
Writing the Final Paper
The Final Paper:
1. Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.
2. Must include a cover page that includes:
a. Title of paper
b. Student's name
c. Course name and number
d. Instructor's name
e. Date submitted
3. Must include an introductory paragraph with a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must conclude with a restatement of the thesis and a conclusion paragraph.
6. Must use at least five scholarly resources from the Ashford University Library.
7. Must document all sources in APA style, as outlined in the approved APA style guide.
8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
9. My final paper of a publicly traded company will be on Johnson & Johnson