A financial analyst with the mythical High Technology Corporation .

19

The destiny Company

The specific objective of this graded written research exercise is to prepare an "executive level financial report" to the Chief Financial Officer (CFO) of a mythical company employed as a financial analyst. This report will pertain to the financial evaluation of a real, publicly-traded, company. It will require independent research (web-based or library), careful financial analysis, and the proper application of key financial theories and formulas.

The company that is to be analyzed for this project is The destiny Company.

 

SITUATION

A financial analyst with the mythical High Technology Corporation . HTC is an established manufacturer of a line of electronic components, which services an international market. HTC is currently a new fully-integrated wireless communication service for world-wide use. A competitive technical and economic product evaluation has determined that THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT (The destiny Company) (a real publicly-traded company) is the best potential candidate for a long-term commitment. THE COMPANY (The detiny Company) is offering a competitively favorable deal. However, based on some serious general concerns about the fallout of companies in the industry in general, the CEO has asked for a CFO to conduct a financial analysis of THE COMPANY (The destiny Company) to determine if it is prudent to commit to this company’s communication system. The cost of cutting over to the new communications system is significant and any interruption in support during the next few years would adversely affect HTC’s performance and profit. Specifically, the question is: will THE COMPANY (The destiny Company) be financially viable over the next two to three years?
SPECIFIC ASSIGNMENT

 

specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT (The detiny Company) for the last three years. In addition to reviewing the traditional financial performance indicators, review THE COMPANY’s past and current stock performance for the last one year. Your report is to consist of three parts:

(1) An evaluation of THE COMPANY’S financial performance for the last three years.

(2) An evaluation of THE COMPANY’S stock performance for the last one year.

(3) Finally, a specific recommendation, with supporting rationale, as to whether or not THE COMPANY’S recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.
In assistance, the CFO has provided the following general guidance. Since it is recognized that the industry is undergoing a major contraction, it is very important to comparatively evaluate THE COMPANY?S financial and stock performance trends against its Industry.

Consider all necessary and relevant financial performance and stock information, trends, and projections in supporting the recommendation. These factors include, but are not necessarily limited to financial statement analysis, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports – when these documents are available.

REPORT REQUIREMENTS

SPECIFIC ASSIGNMENT

Research and analyze the following information for THE COMPANY:
–Annual Balance Sheets for THE COMPANY for the last three years.

–The Income Statements for THE COMPANY the last three years.

 

-1 Background and Industry

-2 Select most significant financial performance results for the company: Compare Revenue, net income, working capital, total assets for the last three years and other results of choice of the company against the industry or main competitor. Present the table with this information in a report.

-3–Calculate the financial ratios for the last three years for THE COMPANY.Show the calculation!, calculate all the ratios studied in chapter 14(Financial management: Core concepts Book).

-4- Evaluate Return on Equity for the company for the last three years using the DuPont analysis.

 

Taking the information from the Income statements and the Balance sheets, calculate the company’s return on equity using the DuPont technique for the company for three years.

 
-5- Evaluate other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations bond rating valuations . Make an overall conclusion about financial performance of the company during the last years. Compare the results that was received against the industry or main competitor.
-6- Collect and evaluate the data about stock performance of the assigned company’s for the last one year. Compare the results that was received against the industry or main competitor.

 

-7- Develop specific recommendation, with supporting rationale, as to whether or not the assigned company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.
PRESENTATION OF PAPER AND WRITING :

-Organization, Format and Presentation of Paper including Introduction, Body, and Summary.
Research Sources and Significance of Research Information and Data.

The final report is to be an executive-level financial report, directed to the CFO. This report must be about 10 double-spaced typewritten pages. Include suitable comparative, quantitative and qualitative analyses and conclude with a specific and supported recommendation on the projected financial viability of THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT for the next several years.

Essential research data, financial calculations and other documentation as necessary to support recommendation should be referred to in summary form in a report and attached in detail as enclosures. All major sources should be referenced.                                                                                                                                                            PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC15)

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