Compute the return on equity using the dupont system

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Reference no: EM131289727

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.

The completed report should include:

An introduction to the company, including background information.

A complete and thorough 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.

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

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

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

Review of 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 - 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 from the Ashford library. Be sure to include links to websites that were used as references or to access company information. Include in cite quotations.

Reference no: EM131289727

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