{"id":27819,"date":"2021-02-03T10:48:37","date_gmt":"2021-02-03T10:48:37","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=27819"},"modified":"2021-02-03T10:48:37","modified_gmt":"2021-02-03T10:48:37","slug":"prepare-an-executive-level-financial-report-to-the-chief-financial-officer-cfo-of-a-mythical-company-in-which-you-are-employed-as-a-financial-analyst","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2021\/02\/03\/prepare-an-executive-level-financial-report-to-the-chief-financial-officer-cfo-of-a-mythical-company-in-which-you-are-employed-as-a-financial-analyst\/","title":{"rendered":"prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>OBJECTIVEThe specific objective of this graded written research exercise is to prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are 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.identification of the company by ticker symbol and namea reasonable and appropriate explanation of why you want to examine the alternative companythe source of the analyst\u2019s report that will be used in the analysis (which must be submitted to me)acknowledgement by you that all of the specific elements of the assignment (see below) will be prepared by you and included in the final research project reportSITUATIONYou are a financial analyst with the mythical High Technology Corporation (\u201cHTC\u201d). 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) (a real publicly-traded company) is the best potential candidate for a long-term commitment.THE 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 your CFO to conduct a financial analysis of THE COMPANY to determine if it is prudent to commit to this company\u2019s 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\u2019s performance and profit.Specifically, the primary question is: will THE COMPANY be financially viable over the next two to three years?YOUR SPECIFIC ASSIGNMENTYour 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. In addition to reviewing the traditional financial performance indicators, you are also to review THE COMPANY\u2019S past and current stock performance. Your report includes three parts:(1)\u00a0 An evaluation of THE COMPANY\u2019S financial performance for the last three years. (See detailed description below)(2)\u00a0 An evaluation of THE COMPANY\u2019S stock performance for the last one year. (See detailed description below)(3)\u00a0 Finally, a specific recommendation, with supporting rationale, as to whether or not THE COMPANY\u2019S recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.To assist you in your task, 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\u2019S financial and stock performance trends against its Industry or major competitor.SUGGESTED WEBSITESwww.marketwatch.com -To find the information for your company you need to type the stock symbol in theSearchwindow to get into the company\u2019s page.www.morningstar.com- To find the information for your company you need to type the stock symbol in theQuoteswindow to get into the company\u2019s page.www.money.cnn.com -To find the information for your company you need to type the stock symbol in theSearchwindow to get into the company\u2019s page.www.finance.yahoo.com- To find the information for your company you need to type the stock symbol in theSearchwindow to get into the company\u2019s page.www.nyse.com \u2013 Click on Data, then click on Stocks (under Quotes), and type the name of the company or the stock symbol in the window \u2018Keyword or symbol\u2019 to get into the company\u2019s page.www.nasdaq.com- To find the information for your company you need to type the stock symbol in theSearchwindow to get into the company\u2019s page.Company\u2019s websitesYOUR SPECIFIC ASSIGNMENTUsing the information from the websites the students have to develop evaluation of the financial and stock performance for THE COMPANY. (Totally 85% of the assignment grade)-1 \u0096Background and Industry (oneshortparagraph).-2 \u0096Analysis of the most significant financial performance results. (15% of the project grade)a.\u00a0 Select of most significant financial performance results for the company. Create a table that contains the THE COMPANY\u2019S financial performance resultsfor the last three yearsand for the major competitor or industry for the last year: Revenue, net income, working capital, and other financial performance results of your choice. Present the table with this information in your report.b.\u00a0 Write about 1 page of the trend analysis of these financial performance results.-3 \u0096 Financial ratio analysis. (15% of the project grade)Find financial ratios for the company for the last 1-3 years and its major competitor for the last year in the Internet.a.\u00a0 \u00a0 Present the ratios as the table(s) in your project.b.\u00a0 \u00a0 Write about 2 pages of analysis of the ratio results that you found. Compare the ratio results against the industry or main competitor. In your analysis you should answer the following questions:How liquid is the company?How is the company financing its assets?Is management generating a substantial profit on the company\u2019s assets?-4-Evaluate Return on Equity for the company for the last three years using the DuPont analysis.(10% of the project grade)a.\u00a0 Taking the information from the Income statements and the Balance sheets, calculate the company\u2019s net profit margin, total assets turnover equity multiplier, and return on equity using the DuPont formula for the company for three years.Show your calculation!ROE = Net profit margin x Total assets turnover x Equity multiplier\u00a0 = Net income\/Sales x Sales\/Total assets x Total assets\/Common equityYou can use Revenue instead of Sales.\u00a0 b. Compare the results to main competitor. For the major competitor you can use ratios from the Internet or calculate them for the last year.Write about 1 page of analysis of the results that you received. In your report please answer the question: If the management of the company would like to improve their return on equity, what should the management of these companies do?-5- Evaluate other areas of financial analysis: capital spending, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. (10% of the project grade)1) Find the data for capital spending. How much did THE COMPANY spend on research, development, and engineering in the most recent year? How did this compare with the previous year?2) Find the current beta for the company and its major competitor in the Internet.a.\u00a0 Present beta results as the table in your project.b.\u00a0 Write about 0.5 page of analysis of beta values that you found. Compare the beta values against the main competitor. In your report please answer the question: How risky the company is?-6- Collect and evaluate the data about stock performance of the assigned company\u2019s for the last one year. (20% of the project grade).1) Find the market ratios for the company for the last 1-3 years and its major competitor for the last year in the Internet.a.\u00a0 Present themarketratios as the table(s) in your project.b.\u00a0 Write about 1 page of analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor. In your report please answer the question: Are the common stockholders receiving an adequate return on their investment?-2) Analysis of the historical stock prices trend for the last year.a.\u00a0 Collect and evaluate the data about stock prices of the assigned company\u2019s for the last one year for the company and its major competitor.b.\u00a0 Create the chart(s) using the stock price chart tools on the websites or Excel. Present the chart(s) in your project.c.\u00a0 Write about 0.5 page of analysis the historic stock prices trend for the last year.3) Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. Note that you will needthe risk-free rate and the market return. Show this information in your project.a.\u00a0 To get the current yield on 10-year Treasury securities go to Finance!Yahoo\u2019s at www.finance.yahoo.com -click on Market Data \u2013 Bonds. You will use the current yield on 10-year Treasury securities as the risk-free rate to estimate the required rate of return on stocks. Show this information in your project.b.\u00a0 To get the market return go tomoney.cnn.com, Click on Market, then click on S&amp;P 500.You will use 52-weeks change for S&amp;P500 listed as \u2018Year-to-Date\u2019 percentage change. Show this information in your project.c.\u00a0 Calculate the required return on THE COMPANY stock using the Capital Asset Pricing Model (CAPM) Security Market Line.Please show your work.d.\u00a0 Find on the Internet the 52-weeks change of the stock price. Compare the required return on the stock calculated using CAPM against it\u2019s historical return over the last 52 weeks, found on the Internet. Is there a difference between these returns? Is THE COMPANY\u2019S stock overvalued, undervalued, or properly valued? Why? Explain your answer.-7- Develop a specific recommendation, with supporting rationale, as to whether or not the assigned company\u2019s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment (about 1 page) (15% of the project grade).<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>OBJECTIVEThe specific objective of this graded written research exercise is to prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27819","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst - onlineclassesguru<\/title>\n<meta name=\"description\" content=\"prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/onlineclassesguru.com\/index.php\/2021\/02\/03\/prepare-an-executive-level-financial-report-to-the-chief-financial-officer-cfo-of-a-mythical-company-in-which-you-are-employed-as-a-financial-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"prepare an \u201cexecutive level financial report\u201d to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst - 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