Project_Sec2 - Team Project Accounting for Decision Making MGMT 2300 Sec 2 Spring 2008 Purpose The purpose of this project is to provide

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Team Project Accounting for Decision Making MGMT 2300 Sec 2 Spring 2008 Purpose The purpose of this project is to provide opportunities to read, understand, and analyze the firms’ financial statements. In this project, you are expected to use financial statements analysis in comparing competitiveness of two firms by examining their past performance. Then you should predict future competition based on the analysis using the financial statement information. Through this project, I hope you to understand the importance of financial reporting, specifically company filings such as 10-K and 10-Q. In the real world the framework for equity valuation consists of three steps. First, you should understand the past. In this step, you need to collect past information and understand the business. Also you need to do some financial ratio analysis and cash flow analysis. Once you understand the past, you are ready to forecast the future. So our second step is forecasting cash flows, income statement item(s), and balance sheet item(s). After you complete forecasting the future, you can estimate firm value based on some valuation models. Requirements The project is divided into six parts. In Part I, you need to provide general description of the firm. In Part II, stock price and market analysis needs to be done. In Part III, financial statement analysis specifically, ratio analysis is to be provided. Part IV should cover trend analysis such as horizontal analysis and vertical analysis (if necessary). In Part V, you need to describe the firm’s overall disclosure level and quality of accounting information. Chapter 11 will be a good source to understand the quality of accounting information and the level of disclosure. In Part VI, you need to provide your recommendation to your customer by putting together information you got from Part I
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2008 for the course MGMT 2010 taught by Professor Park during the Spring '08 term at Rensselaer Polytechnic Institute.

Page1 / 3

Project_Sec2 - Team Project Accounting for Decision Making MGMT 2300 Sec 2 Spring 2008 Purpose The purpose of this project is to provide

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online