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Need some help with this assignment, It is a crazy week for me and
if you are ab le to help me please let know. I don't want the work of another student so please be considerate.
OBJECTIVE
The specific objective of this graded written research exercise is to 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. 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.
The company that is to be analyzed for this project is chosen by the student.
SITUATION
You are a financial analyst with the mythical High Technology Corporation ("HTC"). 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's
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's performance and profit. Specifically, the question is: will THE COMPANY be financially
viable over the next two to three years?
YOUR SPECIFIC ASSIGNMENT
Your 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’S past and current stock performance. Your report includes three parts:
(1) An evaluation of THE COMPANY’S financial performance for the last year. DuPont
analysis and analysis of significant financial performance results are required for the last three
years. (See detailed description below)
(2) An evaluation of THE COMPANY’S stock performance for the last one year.
(3) Finally, a specific recommendation, with supporting rationale, as to whether or not THE
COMPANY’S 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’S financial and stock performance trends against its
Industry.
You may wish to include all necessary and relevant financial performance and stock information,
trends, and projections in supporting your recommendation. These factors may include, financial
ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating
service valuations, bond rating valuations, and management and investment reports - when these
documents are available.
REPORT REQUIREMENTS
YOUR SPECIFIC ASSIGNMENT
Research and analyze the following information for THE COMPANY (SELECTED BY
STUDENT).
--Annual Balance Sheets for THE COMPANY for the last three years.
--The Income Statements for THE COMPANY the last three years.
-- Annual reports, 10K or 10Q------
--Industry norms -----------
---Analysts’ reports on performance
-- Management reports or press releases
Using this information the students have to develop evaluation of the financial performance for
THE COMPANY. (Totally 85% of the assignment grade)
-1—Background and Industry (one short paragraph).
-2—Select of most significant financial performance results for the company: Compare Revenue,
net income, working capital, total assets for the last three years and other results of your choice
of the company against the industry or main competitor. Present the table with this information in
your report. Write about 1 page of the analysis of these financial performance results. (15% of
the project grade)
-3—Find financial ratios for the company and its major competitor in the Internet. Write about 1-
2 pages of analysis of the ratio results you received. (15% of the project grade). Compare the
ratio results against the industry or main competitor.
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