Please read: ONLY THE BOLD/italic/underlined PART OF THE ASSIGNMENT NEEDS TO BE COMPLETED. Please follow the bold/underlined format below.

Please read: ONLY THE BOLD/italic/underlined PART OF THE ASSIGNMENT NEEDS TO BE COMPLETED. Please follow the bold/underlined format below.

Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of Sprint. In addition to reviewing the traditional financial performance indicators, you are also to review Sprint’s past and current stock performance.. Your report includes three parts:

(1)        An evaluation of Sprint’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 Sprint’s stock performance for the last one year.

(3)        Finally, a specific recommendation, with supporting rationale, as to whether or not Sprint’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 Sprint'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 Sprint.

--Annual Balance Sheets for Sprint for the last three years (2013-15).

--The Income Statements for Sprint the last three years (2013-15).

-- 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 Sprint.) 

-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.

-3—Calculate at least 6 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. Compare the ratio results against the industry or main competitor.

-4- Evaluate Return on Equity for the company for the last three years using the DuPont analysis. Compare the company’s results to a major competitor.

Taking the information from the Income statements and the Balance sheets, calculate the company’s return on equity using the DuPont technique for the company for three years. Show your calculation!

Write about 1 page of analysis of the results that you received. Compare the results to main competitor. If the management of the company would like to improve their return on equity, what should the management of these companies do? 

-5- Evaluate other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. Make an overall conclusion about financial performance of the company during the last years. Compare the results that you received against the industry or main competitor.  Summarize the results that you received in 1 page. What are the firm’s financial strengths and weaknesses

-6- Collect and evaluate the data about stock performance of the assigned company's for the last one year. Compare the results that you received against the industry or main competitor.

Write about 1 page of analysis of the ratio results you received. (20% of the project grade).

-7- Develop a specific recommendation, with supporting rationale, as to whether or not the assigned company's recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment. (about 1 page) (15% of the project grade)

PRESENTATION OF PAPER AND WRITING (15%) of the project grade):

-Organization, Format and Presentation of Paper including the Title page, Introduction, Body, and Summary (4% of the project grade)

Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper (3% of the project grade)

Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report (3% of the project grade)

Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology (5% of the project grade)

Your final report is to be an executive-level financial report, directed to the CFO. This report should be about 8-10 double-spaced typewritten pages (without tables and graphs). Include suitable comparative, quantitative and qualitative analyses and conclude with a specific and supported recommendation on the projected financial viability of Sprint for the next several years.

Essential research data, financial calculations and other documentation as necessary to support your recommendation should be referred to in summary form in your report and attached in detail as enclosures.  All major sources should be referenced.  There is no set limit to the size of the enclosures, but it is recommended that only essential enclosures be attached. You should use references and bibliography to identify any remaining supporting documents you wish to include.

The Group Research Report must be posted to the LEO Student Assignments as a Attachments are limited to a maximum two files in doc, docx., xls. xlsx., or rtf. formats. OTHER FORMATS ARE NOT ACCEPTABLE, will not be reviewed and graded.

If these formats are not available, use the following option:

File - Save As – in the bottom of the window for saving file you see “save as type” – choose type Rich Text Format for doc. file, and previous option of Excel for Excel file. 

 Pdf. files will not be accepted and graded.

All works must be Word processed. Handwritten and scanned work will not be accepted and graded.

This report is an individual effort and must be researched, developed and prepared by you.  All questions related to this assignment, should be referred to the mythical CFO (i.e., your instructor).