Impact on debt rating and stock price

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Reference no: EM131300146

Imagine you have been hired as a consultant by Zachary Meyerowitz, chief investment officer for Bright Side investment fund. Mr. Meyerowitz has asked you to estimate the change needed to adjust Exxon Mobil’s reserves valuation in consideration of lower oil prices and potentially lower demand due to energy policy and regulations. He would also like to know how this would affect the three elements of the DuPont ratio, the return on equity outcome, and your opinion of the impact this will have on their debt rating and stock price. Compose the memo into four to five paragraphs: Use a standard business memo heading.

1. Introduction: state purpose, identify the method of analysis, preview conclusions

2. Adjustment to the reserve valuation; include your outcome and describe your method for reaching that outcome

3. Impact on the financial statements, and ratio outcomes.

4. Impact on debt rating and stock price

5. Concluding remarks if desired.

Reference no: EM131300146

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