Assessment Project 15a Final Will Be Assigned

assessment Project 15a Final Project Will Be Assigned Involving T

This assignment involves analyzing and making decisions using financial statements of two companies within the same industry. The analysis includes financial statement ratios, common size analysis, and vertical analysis to draw conclusions about the investment potential of each company. The project requires a written report, including company background, financial statement data, company and industry analysis, and a final decision recommendation. Presentations will be required to communicate findings to the class, evaluated based on clarity, organization, knowledge, and presentation skills.

Paper For Above instruction

The final project for this course entails a comprehensive financial analysis of two publicly traded companies within the same industry to guide investment decisions. As a group of 3-5 students, you will select two companies—approved by your instructor—and conduct an in-depth analysis structured around company background, financial statement examination, industry overview, and final investment recommendation. This process will involve multiple steps outlined in the project guidelines, emphasizing critical evaluation of financial data and contextual industry factors.

First, each group will prepare an APA-formatted one-page background profile for each selected company. This background should include relevant company history, recent developments, legal issues, market positioning, and strategic initiatives that may influence investment attractiveness. This foundational context enables a clearer understanding of each firm's operational environment and strategic outlook.

Second, the group will obtain three years of the companies’ financial statements—specifically the balance sheets and income statements—directly from the SEC’s EDGAR database (SEC.gov). These financial statements serve as the basis for quantitative analysis. The team must carefully input the data into the Financial Statement Analysis Package (FSAP), Version 7.0, ensuring that the balance sheets balance and that net income figures are accurate and consistent across statements.

Third, utilizing FSAP, the team will perform detailed financial analyses, including ratio calculations, horizontal and vertical analyses, and common size statements, over the three-year period. Results will be compiled into professional summary tables for presentation. Focus should be on important financial metrics that reveal liquidity, profitability, leverage, and efficiency trends over time. This analysis illuminates the financial health, operational efficiency, and risk profile of each company.

Fourth, a comprehensive company analysis will be conducted, emphasizing recent developments, market position within the industry, stock price fluctuations relative to industry and overall market performance, and external factors. Consideration should be given to legal challenges, new markets, and product innovations that could impact future performance. This section should be approximately four pages, formatted in APA style, and provide insight into strategic issues and risks facing each firm.

Fifth, the group will summarize macroeconomic and industry-specific conditions influencing your selected industry. This industry analysis, approximately two pages in APA format, should include recent market trends, regulatory changes, geopolitical events, macroeconomic indicators, and industry averages for financial ratios. Sources such as Standard & Poor’s, Mergent, Yahoo Finance, and other reputable financial platforms should support your data. The goal is to contextualize each industry’s outlook and identify factors impacting company performance.

The final report will integrate all previous sections, including a merged APA-style document consolidating company backgrounds, analyses, FSAP summaries, and industry insights. The conclusion will synthesize findings, highlighting significant financial and strategic insights, and will explicitly state whether your team recommends investment in one or both companies. Justification must rely on analyzed data, ratio performance, and industry context.

Additionally, as part of the capstone, students must deliver a group presentation synthesizing their research findings. The presentation will evaluate your ability to communicate complex financial information clearly and professionally, covering company overviews, key financial metrics, industry outlook, and your investment recommendation. The presentation rubric emphasizes organization, knowledge, professionalism, visual aids, and delivery skills.

References

  • Brigham, E. F., & Ehrhardt, M. C. (2019). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
  • Gitman, L. J., & Zutter, C. J. (2015). Principles of Managerial Finance (14th ed.). Pearson.
  • Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (16th ed.). Wiley.
  • Penman, S. H. (2012). Financial Statement Analysis and Security Valuation (5th ed.). McGraw-Hill Education.
  • Shapiro, A. C. (2019). Multinational Financial Management (11th ed.). Wiley.
  • U.S. Securities and Exchange Commission (SEC). (n.d.). EDGAR Company Filings. https://www.sec.gov/edgar
  • Higgins, R. C. (2012). Analysis for Financial Management (10th ed.). McGraw-Hill Education.
  • Damodaran, A. (2015). Applied Corporate Finance. Wiley.
  • Fama, E. F., & French, K. R. (1992). The Cross-Section of Expected Stock Returns. Journal of Finance, 47(2), 427-465.
  • Standard & Poor’s. (2023). Industry Surveys and Reports. S&P Global Market Intelligence.

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