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| Category | Economics |
|---|---|
| Subject | Accounting |
| Difficulty | College |
| Status | Solved |
| More Info | Financial Accounting Assignment |
Assignment Description
Name: _______________________
After your analysis of the performance of Target, obtain the financial statements of another publicly traded corporation and compute and show the following for the current year and previous year of both Target and the corporation you selected:
Valuation Ratios:
1.
Price-Earnings Ratio (for EPS use Diluted EPS Total)
2. EPS
3. Closing stock price as of the current year and previous year. (Try to select a company with similar fiscal years as Target.)
Profitability Ratios:
4. Gross margin on net sales
5. Return on shareholder’s equity (use year-end numbers only for average)
6. Return on average assets (use year-end numbers only for average)
7. Net Income
Financial Strength Ratios:
8.
Current Ratio
9. Debt to equity ratio
Requirements:
Based on your calculations of the above requirements, prepare a report to management (Senior Vice President – Equity Research) in which you identify the corporation which (1) has had the strongest historical performance and (2) will be the best performer. Make any assumptions to support your decision. Also, use any outside information (e.g current events, etc.) to support your decision. You may also be creative and develop one or many alternative ratios to value the companies to support your decision. You must support your decision.
REQUIRED: Your overall report should not exceed 3 pages - typed, 1.15 space, font: 12pt, Times New Roman. (This does not include the calculations for the ratios list below.)
You may use the following template to summarize your answers or you may create your own template. You may wish to perform a horizontal analysis to assess the movement of the ratios. Please use excel or word so I can see a summary of your calculations.
Name: ________________________________
Financial Indicator: | Target | Your Company | ||||
As of date: | Current Year | Previous Year | Change Value & % | Current Year | Previous Year | Change Value & % |
Price-Earnings Ratio |
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EPS |
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Closing stock price |
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Gross profit on net sales |
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Return on shareholder’s equity |
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Return on average assets |
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Net Income
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Current Ratio |
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Book Debt–Equity Ratio |
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??????? - optional
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??????? – optional |
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PROJECT DUE DATE: 11:59 PM (EST) December 3, 2018. Grade reductions apply for projects submitted after 11:59 PM (EST) December 10. Please submit via Blackboard. Only projects submitted via Blackboard will be graded. This project will count as 20% of Final Exam. DO NOT SUBMIT COMPANY FINANCIAL STATEMENTS.
The following rubric provides general grading guidelines. They will be applied to determine the grade of your analysis and your overall grade of this assignment.
Final Exam
Criteria | Level 4 | Level 3 | Level 2 | Level 1 | Unacceptable |
Points | 4 | 3 | 2 | 1 | 0 |
Assignment | Completely fulfills assignment requirements | Completely fulfills assignment requirements with works cited incl. | Partially fulfills assignment requirements (almost all). | Partially fulfills assignment requirements; No work cited; | Work in no way relates to assignment; No work cited; |
Your report
| Thesis is a clear, arguable, well developed, and definitive statement of position. It clearly answers the question – which is the best equity investment to purchase and / or hold. | Thesis is a clear and arguable statement of your position that answers the question: your recommendation of the best equity investment to purchase and / or hold. | Thesis is a clear and somewhat arguable statement of position. | Thesis is an outline of points; it is not an arguable statement of position
| Work does not have a thesis – no point too at all. You just show calculations |
Evidence: Analysis and Ratio Calculations | Presents relevant and fully analyzed textual evidence to support the thesis. Calculated all ratios correctly and showed supporting calculations. | Presents relevant and adequately analyzed textual evidence to support the thesis. Calculated all ratios correctly but showed little supporting calculations. | Presents relevant and partially analyzed textual evidence to support the thesis. Calculated all ratios correctly but showed no supporting calculations. | Textual evidence (ratios) are irrelevant and / or is not analyzed. | Provides no textual evidence to support the thesis. |
Same investment alternative selected by another class member | Clearly and fully explains selection and persuasively refutes the other alternative, quoting several additional outside sources. | Explains selection and carefully refutes the other alternative, quoting one additional outside sources. | Explains limited opposition and gives basic refutation of the other alternative. Does not quote any sources. | Explains very limited opposition gives basic refutation of the other alternative. Does not quote any sources. | Does not include op./ref. in paper |
Mechanics
| Sentence structure is correct. Punctuation and capitalization are correct. Grammar is correct. | Sentence structure is generally correct. Some awkward sentences do appear. 1 or 2 errors in punctuation and/or capitalization. | Work contains structural weaknesses and grammatical errors. There are 3 or 4 errors in punctuation and/or capitalization. | Work contains multiple incorrect sentence structures. 4 or more errors in punctuation and/or capitalization. | Too many errors - more than 7 exist. |
Report showed creativity and independent thinking. | Report showed strong evidence of creativity. Reasoning is independent and reasonable and highly original. Outside sources are clearly quoted / documented. | Report showed some evidence of creativity. Reasoning is original. Outside sources are quoted / documented. | Report showed little evidence of creativity. Reasoning is somewhat original. Outside sources are quoted / documented. | Student cheated. Report mostly copied from the internet or another classmate. Thoughts of others are not quoted or documented. | Student cheated. Student submitted report (in total or in part) of another student in this class or another class. Thoughts of others are not quoted or documented. |
