Reference no: EM132419009 , Length: 1500 Words
PFN 201 Principles of Finance Assignment, Khawarizmi International College, UAE
Learning Outcomes -
1: Discuss the theory of financial intermediation.
2: Evaluate banking performance, according to risk and return perspective.
3: Analyze risk and return, and measure the relative efficiency.
Assignment -
Select a company (incorporated firm)/financial institution such as a commercial bank listed in the stock exchanges of Arab Gulf Countries or U.S.A or European countries and take financial statements of this firm for the last two years e.g. 2017, 2018.
Prepare a report which answers the following:
1. Describe and evaluate the general position and business environment of the institution (industry, major products or services, markets, geographic locations, major competitors).
2. Analyze any three types of risks that the company could face like: Business risk, financial risk, interest rate risk, liquidity risk, market risk, event risk, purchasing power risk, exchange rate risk, tax risk.
3. Calculate the followings (a, b & c) and write a detailed analysis of company's position and performance by comparing the financial statements of the company for two consecutive years.
a) Liquidity Ratio:
1) Current Ratio for 2017, 2018
2) Quick Ratio for 2017, 2018
b) Solvency Ratios:
1) Debt Ratio for 2017, 2018
2) Debt to Equity Ratio for 2017, 2018
3) Interest Coverage Ratio for 2017, 2018
c) Profitability Ratios:
1) Earnings per Share (EPS) for 2017, 2018
2) Net Profit Margin for 2017, 2018
3) Gross Profit Margin for 2017, 2018
4) Return on Investment (ROI) for 2017, 2018
5) Return on Equity (ROE) for 2017, 2018.