Evaluate the financial risks associated with operating internationally.  If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.

Week 5 – Final Paper

Evaluation of Corporate Performance of Target

The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.

Research Tip: The “Mergent” database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors.  To access this database enter the Ashford Library and select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section “M” for “Mergent”. For help with using Mergent, use Mergent Online Quick Tips.

For help with reading an annual report access this handy guide (Links to an external site.)Links to an external site. from Money Chimp.

The completed report should include:

· An introduction to the company, including background information.

· A complete and thorough financial statement review.

· Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.

· Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:

· Liquidity

· Financial leverage

· Asset management

· Profitability

· Market value

· Debt

· Per-Share

· Measures of relative value (P/E, P/B)

· Activity

· Cash Flow

· A calculation of Return on Equity (ROE) using the DuPont system.

· Assessment of management performance by calculating Economic Value Added (EVA).

· A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

· Evaluate the financial risks associated with operating internationally.  If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.

The paper

· Must be eight to ten double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site..

· Must include a separate title page with the following:

· Title of paper

· Student’s name

· Course name and number

· Instructor’s name

· Date submitted

· Must begin with an introductory paragraph that has a succinct thesis statement.

· Must address the topic of the paper with critical thought.

· Must end with a conclusion that reaffirms your thesis.

· Must use at least five scholarly sources, such as the textbook, industry reports, and articles from the Ashford University library to support your findings and recommendations.

· Must document all sources in APA style as outlined in the Ashford Writing Center.

· Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment.

Total Possible Score: 20.00

Includes an Introduction to the Company, With a Thorough Financial Statement Review, and Pro forma Financial Statements

Total: 4.00

Distinguished – Provides a comprehensive introduction to the company (including background information) with a thorough financial statement review and pro forma financial statements for the next fiscal year. The review and pro forma financial statements are supported with accurate calculations.

Proficient – Provides an introduction to the company (including background information) with a financial statement review and pro forma financial statements for the next fiscal year. The review and pro forma financial statements are supported with accurate calculations, but minor details are missing.

Basic – Provides a limited introduction to the company (including background information) with a financial statement review and pro forma financial statements for the next fiscal year. The review and pro forma financial statements are somewhat supported with mostly accurate calculations and/or relevant details are missing.

Below Expectations – Attempts to provide an introduction to the company (including background information) with a financial statement review and pro forma financial statements for the next fiscal year; however, the review and pro forma financial statements are not supported with accurate calculations and significant details are missing.

Non-Performance – The introduction to the company, with thorough financial statement review and pro forma balance sheet and income statements for the next fiscal year, is either nonexistent or lacks the components described in the assignment instructions.

Includes a Ratio Analysis and Calculates the Return on Equity (ROE) Using the DuPont System

Total: 4.00

Distinguished – Includes a comprehensive ratio analysis and calculates the ROE using the DuPont system. Each ratio analysis and the ROE calculation are accurate and complete.

Proficient – Includes a ratio analysis and calculates the ROE using the DuPont system. The ratio analysis and ROE calculation are accurate. Minor details are missing.

Basic – Includes a limited ratio analysis and calculates the ROE using the DuPont system. The ratio analysis and ROE calculation are mostly accurate. Relevant details are missing.

Below Expectations – Attempts to include a ratio analysis and calculates the ROE using the DuPont system; however, the ratio analysis and ROE calculation are not accurate and significant details are missing.

Non-Performance – The ratio analysis and calculations for ROE using the DuPont system are either nonexistent or lack the components described in the assignment instructions.

Assesses Management Performance By Calculating the Economic Value Added (EVA)

Total: 3.00

Distinguished – Comprehensively assesses management performance by accurately calculating the EVA.

Proficient – Assesses management performance by accurately calculating the EVA. Minor details are missing from the assessment.

Basic – Partially assesses management performance by calculating the EVA. Relevant details are missing from the assessment or the EVA calculation is inaccurate.

Below Expectations – Attempts to assess management performance by calculating the EVA; however, the assessment is missing significant details and the EVA calculation is inaccurate.

Non-Performance – The assessment of management performance by calculating the EVA is either nonexistent or lacks the components described in the assignment instructions.

Includes a Synopsis of the Findings, Including Recommendations and Rationale for Whether or Not to Purchase the Company’s Stock

Total: 4.00

Distinguished – Provides a comprehensive synopsis of the findings, including recommendations and rationale for whether or not to purchase the company’s stock.

Proficient – Provides a synopsis of the findings, including recommendations and rationale for whether or not to purchase the company’s stock. Minor details are missing.

Basic – Provides a partial synopsis of the findings, including recommendations and rationale for whether or not to purchase the company’s stock. Relevant details are missing.

Below Expectations – Attempts to provide a synopsis of the findings, including recommendations and rationale for whether or not to purchase the company’s stock; however, significant details are missing.

Non-Performance – The synopsis of the findings, including recommendations and rationale for whether or not to purchase the company’s stock, is either nonexistent or lacks the components described in the assignment instructions.

Evaluates the Financial Risks Associated with Operating Internationally

Total: 3.00

Distinguished – Provides a comprehensive evaluation of the financial risks associated with operating internationally or the financial risks could be if they were to expand internationally.

Proficient – Provides a comprehensive evaluation of the financial risks associated with operating internationally or the financial risks could be if they were to expand internationally. Minor details are missing.

Basic – Partially provides a comprehensive evaluation of the financial risks associated with operating internationally or the financial risks could be if they were to expand internationally. Relevant details are missing.

Below Expectations – Attempts to provide a comprehensive evaluation of the financial risks associated with operating internationally or the financial risks could be if they were to expand internationally; however, significant details are missing.

Non-Performance – The attempt to provide a comprehensive evaluation of the financial risks associated with operating internationally or the financial risks could be if they were to expand internationally, is either nonexistent or lacks the components described in the assignment instructions.

Written Communication: Control of Syntax and Mechanics

Total: 0.50

Distinguished – Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains no errors, and is very easy to understand.

Proficient – Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors, and is mostly easy to understand.

Basic – Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors, which may slightly distract the reader.

Below Expectations – Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors, which distract the reader.

Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.

Written Communication: APA Formatting

Total: 0.50

Distinguished – Accurately uses APA formatting consistently throughout the paper, title page, and reference page.

Proficient – Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.

Basic – Exhibits basic knowledge of APA formatting throughout the paper. However, layout does not meet all APA requirements.

Below Expectations – Fails to exhibit basic knowledge of APA formatting. There are frequent errors, making the layout difficult to distinguish as APA.

Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.

Written Communication: Page Requirement

Total: 0.50

Distinguished – The length of the paper is equivalent to the required number of correctly formatted pages.

Proficient – The length of the paper is nearly equivalent to the required number of correctly formatted pages.

Basic – The length of the paper is equivalent to at least three quarters of the required number of correctly formatted pages.

Below Expectations – The length of the paper is equivalent to at least one half of the required number of correctly formatted pages.

Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.

Written Communication: Source Requirement

Total: 0.50

Distinguished – Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.

Proficient – Uses required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.

Basic – Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are used within the body of the assignment. Citations may not be formatted correctly.

Below Expectations – Uses inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly.

Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.

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