In this project, you will demonstrate your mastery of the following competencies
In this project, you will demonstrate your mastery of the following competencies:
Analyze financial and investment decisions that add value to the organization
Analyze financing options to maximize investor value
Scenario
The CFO of your company has asked for your support in preparing a report for the business’s board of directors. Many of the board members are new, and some of them have little background in finance. With this in mind, you will need to write a report that all board members can easily understand.
Directions
Specifically, you must address the following rubric criteria:
Financial Analysis: In prior assignments, you calculated some of the financial formulas using quarterly financial statements from your chosen business and the Final Project Financial Formulas worksheet. For the financial analysis, edit prior work based on feedback and include it in this final project.
Financial Calculations: Accurately calculate financial formulas to figure out the business’s current financial health. You must calculate the following:
Working capital
Current ratio
Debt ratio
Earnings per share
Price and earnings ratio
Total asset turnover ratio
Financial leverage
Net profit margin
Return on assets
Return on equity
Working Capital Management: Explain the impact of working capital management on a typical business’s operations. Provide examples to support your claims.
Why is it important for a business in general to carefully manage its working capital?
Financing: Explain the options available for a company in general to finance its operations and expansion.
Short-Term Financing: Explain how potential short-term financing sources could help any business raise funds for improving its financial health.
Bond Investment: Discuss the risks and benefits of any business investing in a corporate bond. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
Capital Equipment: Discuss the risks and benefits of any business investing in capital equipment. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
Capital Lease: Discuss the risks and benefits of any business investing in a capital lease, including leasing substantive physical assets like buildings. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
Financial Evaluation: In this step, you will use the knowledge you’ve accumulated thus far and make decisions on whether any or all of the following are appropriate directions for your chosen company. Assume that the situations located in the Final Project Financial Assumptions document are true of your chosen company. For each of the options below, include the necessary ethical factors, appropriate calculations, and examples from previous milestones to support your analysis. Based on your company’s financial health, you should consider:
Bond Investment: Determine if the bond investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
Capital Equipment: Determine if the capital equipment investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
Capital Lease: Determine if the capital lease investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
Future Financial Considerations: Describe your chosen business’s likely future financial performance. Base your description on the business’s current financial well-being and risk levels. This time, do not consider the assumptions in the Final Project Financial Assumptions document. Use your chosen company’s most current financial information to support your claims.
Final Submission:
In Module Seven, you will submit a short paper that describes whether your chosen company should make specific investments based on its financial health. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.
What to Submit
To complete this project, you must submit the following:
Financial Analysis Report
Submit your completed Final Project Financial Analysis Report.
All sources should be cited according to APA style. This includes sources listed in your Final Project Financial Formulas workbook. Consult the Shapiro Library APA Style Guibdgde for more information on citations.