Imagine that you have been tasked by the Director of Finance of your company to perform an analysis of one of your competitors. Please select a publicly traded company; it can be a competitor of the company you work for or any publicly traded company you want to choose. Your assignment is to examine the company on the factors listed below and provide an evidence-based opinion regarding its financial soundness.
For this analysis, you will need to investigate the company on the Internet (e.g., www.yahoofinance.com) and examining the various reports Mergent Online, Mergent Intellect, and Hoover’s Online. You may find additional information using their subject guides for business at http://libguides.njstatelib.org/business.
Introduction. Provide a brief focus statement about your paper and what the reader can expect.
Selection of the company. Provide a brief profile of the selected company and your rationale for selecting it.
Short- and long-range financial problems. From your analysis of research materials, examine the company and provide a report on the short- and long-range financial problems that are evident from the review. If you find no short- or long-range financial problems, provide the evidence to justify this conclusion.
Optimal capital structure to manage financial performance. Define capital structure. Provide examples of the company’s capital structure and its influence, or lack of influence, on the financial performance of the firm.
Financial statements and financial decisions. Analyze the firm’s financial statements and the decisions that appear to have been made to prepare the financial statement.
Articulate how the cost of capital is defined and measured. Define the cost of capital and how it appears to be measured in your selected firm.
Present value. Calculate present value using applicable present value tables.
Summary. Provide a few concluding paragraphs about how your chosen company adheres or does not adhere to sound financial principles.
Guidelines: 10 references from academic books, journal articles, and/or credible online sources. 14 pages in length, Include a cover sheet, table of contents, reference list. Use APA citation format, including in-text citations