Calculate roe using the dupont system

Assignment Help Corporate Finance

Reference no: EM131671423

Assignment

The final paper will involve applying the concepts learned in class to an analysis of a Amazon using data from the company's 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 Amazon company, including background information on Amazon

· 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:

o Liquidity

o Financial leverage

o Asset management

o Profitability

o 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.

The Final Paper

· Must be 15 to 20 double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style.

· Must begin with an introductory paragraph that has a succinct thesis statement.

· Must address the topic of the paper with critical thought.

· Must end with a conclusion that reaffirms your thesis.

· Must use at least five scholarly sources.

· Must document all sources in APA style

· Must include a separate reference page, formatted according to APA format.

Reference no: EM131671423

Questions Cloud

How much will august cash disbursements for materials : Three-fourths of all purchases are paid for in the month of purchase, How much will August's cash disbursements for materials purchases be

Why direct marketing companies are turning to the internet : What is the probability that 78% or more of direct marketing companies are turning to the Internet for new opportunities?

How much will august cash disbursements for materials : Waterway Industries expects to purchase $190000 of materials in July and $200000 of materials in August. How much will August cash disbursements

What is the probability of randomly sampling women : What is the probability of randomly sampling 140 women 16 years of age or older and getting 35 or more who do volunteer work?

Calculate roe using the dupont system : Calculate Return on Equity (ROE) using the DuPont system. Assess management performance by calculating Economic Value Added (EVA).

Advantages of taking a sample versus conducting a census : She is willing to commit $100,000 to this project. What are the advantages of taking a sample versus conducting a census? What are the trade-offs?

Prepare a budgeted multiple-step income statement : North Company has completed all of its operating budgets. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017

What is the probability of getting a sample proportion : Suppose 120 of the 150 homes surveyed use heating oil as the principal heating fuel. What is the probability of getting a sample proportion this large.

Provide a competitive advantage to the company : How using an ABC system can provide a competitive advantage to the company in the market space it operates and the resulting impact to the business performance.

User Account

All Pages