What conclusions you can make about each companys ability

Assignment Help Corporate Finance
Reference no: EM131237211

Financial Project

Project Description

Term Paper

Write a 5-7 page research paper on the selected companies below. The 5-7 pages do not include the title page, graphs or references... they are extra. The paper must include an introduction or abstract and a summary conclusion.

OPTION: You may select any two companies, who are competitors in the same industry that are not on the list. But, they must be public companies. Please let me know in advance if you wish to select different companies than what is offered below.

Company Examples:

Coke and Pepsi
Home Depot and Lowe's
Costco and Sam's Club
Giant and Albertson's
CVS and Walgreens
Regal and AMC
HP and IBM

(Option: any two public companies in the same industry)

Note: This is not a "group" effort as is suggested in the course Syllabus.

Set-up your paper using the following example:

Project Assignment Using Coke and Pepsi as an Example:

Long time competitors in the soft drink industry, PepsiCo and Coca-Cola continue efforts to gain additional market share. Which do you prefer, Coke or Pepsi? Let's take a look at these two companies from a financial perspective rather than our drink preference.

To learn more about PepsiCo and Coca-Cola Enterprises, download the latest PepsiCo 2014 Annual Report at: HYPERLINK "https://www.pepsico.com/docs/album/default-document-library/pepsico-2014-annual-report_final.pdf" https://www.pepsico.com/docs/album/default-document-library/pepsico-2014-annual-report_final.pdf and the Coca-Cola 2014 Annual Report at https://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-reportsannual:. Review the annual reports for general information.

Required:

1. Read -Understanding the Income Statement at: https://www.investopedia.com/articles/04/022504.asp

2. Read -Reading the Balance Sheet at: https://www.investopedia.com/articles/04/031004.asp

3. Compute- the following financial ratios for both companies and provide as an appendix to the required paper. If you need help understanding the meaning of the ratios or how to they are computed, go to: https://www.investopedia.com/university/ratios/

Liquidity measurement ratio: • Current ratio
Profitability indicator ratios:• Return on assets • Return on equity
Debt ratio: • Debt ratio
Operating performance ratio: • Fixed asset turnover ratio
Cash flow indicator ratio: • Dividend payout ratio
Investment valuation ratio: • Price / Earnings ratio

For each company and comparing the two, you are to write a 5 - 7 page report that answers the following six items. The best way to write your paper is by numbering the six items and answering them accordingly. *

1. Provide a short background on each company, the industry and the market (growing, declining, etc.?) in which they operate. (This should be no more than 1 page for both companies in total and can be a part of your introduction.)

2. Using the current ratio and debt ratios, discuss what conclusions you can make about each company's ability to pay current liabilities (debt). Support your conclusions. Which company is doing better, why or why not?

3. Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support your conclusions. Which company is doing better, why or why not?

4. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders. Support your conclusions. Which company is doing better, why or why not?

5. As an investor, discuss which company you would choose to invest in and provide a rationale for your decision. Support your conclusions, why or why not?

6. After concluding your research about each company and reviewing their annual report, discuss what non-financial criteria you would consider when choosing between these two investment options? Support your conclusions, why or why not?

NOTE:

• * The format of the report as indicated above will be graded as indicated in the course Syllabus in "More on the Grading Criteria".

• You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.

• Warning:Do not attempt to find a pre-written paper on the Internet to satisfy this assignment. I will utilize TurnItIn to determine authenticity of your work.

Reference no: EM131237211

Questions Cloud

Express position as an option on the value of the company : Express your position as an option on the value of the company. - Express the position of the debt holders in terms of options on the value of the company.
What is the final pressure of the gas : A quantity of gas in a piston cylinder has a volume of 0.500 m3 and a pressure of 200 Pa. The piston compresses the gas to 0.150 m3 in an isothermal (constant-temperature) process. What is the final pressure of the gas?
Estimate of the mean body mass index for men : Construct a 99% confidence interval estimate of the mean body mass index for men. Construct a 99% confidence interval estimate of the mean body mass index for women
How is the amplitude related to the energy of a wave : How many values of amplitude are there in one wavelength of a wave, and how is the amplitude related to the energy of a wave?
What conclusions you can make about each companys ability : Using the current ratio and debt ratios, discuss what conclusions you can make about each company's ability to pay current liabilities (debt). Support your conclusions. Which company is doing better, why or why not?
How are the frequency and the period of a wave related : Which end (blue or red) of the visible spectrum has the longer wavelength? Which has the higher frequency? How are the frequency and the period of a wave related?
What is the range of wavelengths of visible light : Are radio waves sound waves? Explain. What is the range of wavelengths of visible light? How do these wavelengths compare to those of audible sound? With what speed do electromagnetic waves propagate in vacuum?
Combinations of price and quantity supplied : 1. Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic in each ..
What is the chief physical property that describes pitch : What is a rarefaction? Which is longer, the wavelength of infrasound or the wavelength of ultrasound?What is the chief physical property that describes (a) pitch, (b) loudness, and (c) quality?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd