GUIDANCE/INSTRUCTIONS:
This assignment should involve the application of finance concepts learned
in class regarding analysis of a company using data from its annual report. In
this case, please analyze company data from: Apple. Inc.
*Analyze the strengths and weaknesses of APPLE, Inc., company
and write a report either recommending or not recommending purchase of
the company stock.
The completed report should include: (All 8 elements below are REQUIRED)
1. An introduction to the company, including background information.
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· 2. A complete and thorough
financial statement review.
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· 3. Pro Forma financial
statements (Balance Sheet and Income Statement) for the next fiscal year,
assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for
the next year.
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· 4. Complete ratio analysis for
the last fiscal year using at least THREE (3)ratios
from each of the following categories:
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a. Liquidity
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b. Financial leverage
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c. Asset management
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d. Profitability
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e. Market value
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f. Debt
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g. Per-Share
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h. Measures of relative value (P/E, P/B)
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i. Activity
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j. Cash Flow
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· 5. A calculation of Return on
Equity (ROE) using the DuPont system.
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· 6. Assessment of management
performance by calculating Economic Value Added (EVA).
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· 7. A synopsis of your
findings, including your recommendations and rationale for whether or not to
purchase stock from this company.
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· 8. Evaluate the financial risks associated with operating internationally. If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.
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***PAPER REQUIREMENTS***
· 1.
8-10 PAGES double-spaced pages in length formatted in APA Format
· 2. Five (5) scholarly sources, such as the textbook, industry reports, and articles to support your findings and recommendations while documenting all sources in APA style such as In-citation. Example: “To be or not to be” (Shakespeare, n.d.).
· 3. Address the topic of the paper with critical though
all 8 items above…
· 4. Introductory paragraph that has a succinct thesis statement while ending it with a conclusion that reaffirms your thesis.
