Financial Company Analysis Report , business and finance homework help

Overall trend assessment of the company’s balance sheet and income statement for the last three to five years.  Including graphs and/or charts receives preferred grading.

Provide ratios fully calculated using your assigned corporations actual balance sheet and income statement data within formulas in excel. Also provide an analysis discussion of the same ratio trends (3 page “text” minimum) included in a word document. Ratio categories must include

1. Short Term Solvency aka Liquidity

2. Long Term Solvency aka Financial Leverage

3. Asset Management aka Turnover

4. Profitability

5. Market Value

Select and analyze at least three ratios from each category, 15 ratios minimum. A three-year ratio analysis is the minimum expectation. A five-year analysis receives preferred grading.

Trend analysis of the company’s stock price, PE ratio, and EPS trends for the last three to five years with comparisons of each to competitors.

Evaluation of the firm’s posted Beta (do not calculate Beta, it will be posted in financial websites such as money.msn.com online) in relation to competitors.

Assessment of the firm’s capital structure (D/E Ratio) including any significant changes in the firm’s capital structure over the last three to five years. (Continued on next page)

7. Excel calculation of the WACC (weighted average cost of capital) including independent calculations of each of the following variables. Cost of Equity using both the SML (aka CAPM) Approach and the Dividend Growth Model Approach with a discussion explaining which approach you prefer for WACC and why (Section 14.2 of the text provides advantages and disadvantages for each approach). All of these variables are defined in Chapter 14. There is an Eastman Chemical WACC calculation example on pages 468 – 471 in the text.