Calculate return on equity using the dupont system

Assignment Help Operation Management
Reference no: EM13749913

Evaluation of Corporate Performance

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:

a. Liquidity

b. Financial leverage

c. Asset management

d. Profitability

e. Market value

Calculate Return on Equity (ROE) using the DuPont system.

Assess management performance by calculating Economic Value Added (EVA).

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.

This report should be 15 to 20 pages long, excluding title page and reference page(s), using APA 6th edition formatting guidelines.

Support your findings and recommendations with evidence from at least five scholarly sources in addition to the annual report, such as the textbook, industry reports, and articles. Be sure to include links to websites that were used as references or to access company information.

Reference no: EM13749913

Questions Cloud

Balance of payments : What is the Balance of Payments (BOP)? Enumerate and describe its subaccounts? How can the central bank (Fed) sterilize the domestic economy from the foreign sector? Why do they do this?
Degree of operating leverage-degree of financial leverage : Income Statement. Degree of operating leverage. Degree of financial leverage. Degree of combined leverage.
Find an appropriate solution : You have been hired by Nobody State University (NSU) as a consultant to help the university with how to increase their total revenue. The university has been struggling in recent years, so they have hired you to help them in their last attempt to ..
Calculate return on equity using the dupont system : Calculate Return on Equity (ROE) using the DuPont system. 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.
Write a book reviw of history prince among slave : Write a Book reviw of history Prince among Slave.
Prepare a well labeled and classified balance sheet : Prepare a well labeled and classified balance sheet and income statement and statement of retained earnings for The Montana Pasta company as Dec 31, 2011 and the year ended Dec 31, 2011. Give the list of accounts and thier respective balances below y..
Financial systems and markets : Explain at least two (2) ways financial systems and markets have had an impact in your life in the past or may impact you in the future.
Write a newspaper article about the racial group : A historian writing about the racial group in a book chapter. A news reporter writing a newspaper article or blog entry about the racial group.

Reviews

Write a Review

Operation Management Questions & Answers

  What were the key components of the change effort

What were the key components of the change effort. Why were they important. Do they relate to one another? Was the order in which things happened important? Why or why not

  What average level of pending loans that is open loans can

oregon great bank specialized in auto loans. the management of its loan department is preparing hiring plans for the

  How can the contractor prevent this from happening

Describe the circumstances in which facilities capital cost of money is an allowable cost and provide some possible factors that could make FCCOM unallowable. How can the contractor prevent this from happening?

  Calculate the expected value of perfect information

Beverly Mills has decided to lease a hybrid car to save on gasoline expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area.

  Which of these two methods has the greater accuracy

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft = 127 + 1.9t, and it was developed using data from periods 1 thr..

  Discuss which one is your top choice and why

Also, rank the three companies based off this information and discuss which one is your top choice and why.

  What is the meaning of the slope constant

Prepare a least squares trend line for Hot Off The Rack for each of its pizzas. Plot your projections for the next month and comment on model fits. a. What is the meaning of the slope constant (b) in each case?

  Which of statement best describes virtual reality technology

Which of these statements best describes virtual reality technology?

  What steps would you recommend to the company

What appears to be the overriding factor in the above example and what steps would you recommend to the company?

  High technology low technology

High Technology Low Technology

  What are of tools used in organizational memory management

What are some of the tools used in organizational memory management?

  Claiming that it will lower lead time to one week the

weekly demand for diskettes at a retailer is normally distributed with a mean of 1000 boxes and a standard deviation of

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