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MULTI -MODULE C OMPREHENSIVE PROBLEM ASSIGNMENT Background : The purpose of this comprehensive project is to use a variety of resources to research a corporation. You will also prepare a written paper describing your corporation and summarizing the findings you have developed in the first three parts of the project. Instructions : First choose a company to research. The company must be publicly traded, not the company where you currently work. Your selection may be a competitor of the company you currently work for, a company related to a hobby of yours, a possible stock investment, or simply sound interesting. Each student will select a different company; however companies may be within the same industry. Module Activity Activity Type 5 Cas e Study – Part I: Company Background See specific details below. Use the Library’s research guide to get started on Part I http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 Written Assignment 6 Case Study – Part II: Compute Ratios See specific details below. Use the Library’s research guide to get started on Part II http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 Written Assignment 7 Case Study – Part III: Compare Ratios to Industry Norms See specific details below. Use the Library’s research guide to get started on Part III http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 Written Assignment 8 Case Study – Final Written Paper See specific details below. Written Assignment Required Part I – Module Five Use the Library’s research guide to get started on Part I http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 A. Research and then describe your company's primary business activities. Include: 1. A brief historical summary, 2. A list of competitors, 3. The company's position within the industry, 4. Recent developmen ts within the company/industry, 5. The key risk factors 6. The strategic direction of the company 7. Other items of significance to your corporation. B. Includ e information from a variety of resources. For example: 1. Consult the Form 10 -K filed with the SEC. 2. Review the Annual Report and especially the Letter to Shareholders and the risk factor statement 3. Explore the corporate website including the investor relations website 4. Select at least two significant news items from recent bu siness periodicals C. Submit a written report that is 2 -4 pages long. The report should be well written with introductory and concluding paragraphs. References must be appropriately cited. Be sure to address all of the points in Section A above, using all of the resources listed in Section B. Format: Double -spaced, one -inch margins, using a 12 -point Times New Roman font. Include a complete bibliography. Required Part II – Module Six : The purpose of the second part of the comprehensive project is to compu te financial statement ratios. Use the Library’s research guide to get started on Part II http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 A. Based on formulas given in Appe ndix B, compute the following ratios in Excel for two years. 1. Debt ratio 2. Gross profit margin 3. Free cash flow 4. Times interest earned 5. Accounts receivable turnover 6. Inventory turnover B. Prepare a DuPont Analysis of ROE for two years, including computations of 1. Return on Sales 2. Asset Turnover 3. Return on Assets 4. Financial Leverage 5. Return on Equity C. Bri efly evaluate the ratio trends. Indicate on your worksheet whether each ratio is : 1. stronger / weaker 2. quicker /slower 3. more / less liquid 4. more / less risk D. Submit a report. Write a 2 -4 page report evaluating trends in all of the above ratios. Discuss whether your company’s profitability, efficiency, liquidity, and solvency are improving or deteriorating. Format: Double -spaced, one -inch margins, using a 12 -point Tim es New Roman font. Required Part III – Module Seven: The purpose of the third part of the comprehensive project is to use resources available to obtain industry averages for commonly used ratios. Additionally you will compare company ratio results to i ndustry averages. Use the Library’s research guide to get started on Part III http://libguides.excelsior.edu.vlib.excelsior.edu/bus500 A. Obtain the four -digit primary SIC (Standard Industrial Classification) Code and industry title for your company. Record the primary SIC code and industry title at the top of the Ratio Analysis Worksheet. B. Obtain industry averages for commonly used ratios i n the current period. Industry average information is reported by industry title or SIC code. C. Look up the following industry -average ratios : 1. Current ratio 2. Debt ratio 3. Gross profit margin 4. Times interest earned 5. Accounts receivable turnover 6. Inventory turnover 7. Return on Sales 8. Asset Turnover 9. Return on Assets 10. Financial Leverage 11. Return on Equity D. Submit a report. Write a 2 -4 page report comparing the above ratios to industry averages. Discuss whether your company’s profitability, efficiency, liquidity, and solvency are better than, or worse then, its peers. Format: Double -spaced, one -inch margins, using a 12 -point Times New Roman font. Required Part IV – Module Eight : A. Prepare a well -written report titled “ , Investment Recommendation ” based upon your research and analysis of this company’s financial information. Identify 3 -5 significant points that justify your conclusion. Support your points with a comprehensive explanation incorporating sound reasoning. While the main focus of your investment recommendation should be on the financial indicators, you should also consider other non -financial factors in your overall analysis, including the overall strategic direction of the company. B. Submit a report that is 4 -5 pages long. The report should be well -written with introductory and concluding paragraphs. References mus t be appropriately cited in APA . Format: Double -spaced, one -inch margins, using a 12 -point Times New Roman font. Note that some industry averages may not ap ply to your company.
