checkpoint assignment

COURSE PROJECT/CHECKPOINT ASSIGNMENT

Company: NIKE

Each student will be assigned a company for which they will conduct a financial analysis. Included in the analysis will be the following items:

Background Information/Environmental Scan

DuPont Identity

Current Ratio

Quick Ratio

Inventory Holding Period

Average Collection Period

  • Debt Ratio

Free Cash Flow

  • Market Value Added 

Economic Value Added

  • Dividend Yield

Required Rate of Return based on the Capital Asset Pricing Model

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After calculating the above items, the student will make a recommendation to buy, sell, or hold the company’s common stock at its current price. The recommendation should be based on the calculations required plus any other information about the company that the student believes pertinent.

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In a separate section of the paper, the student will describe a situation in which his/her company would make use of capital budgeting. No calculations are required. This section of the paper would be about one to two pages describing the process that the company would make use of for analyzing the capital budgeting situation.

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In a third section of the paper, the student should describe how the company would use cost-volume-profit analysis for one of its products. No calculations are necessary; just provide an explanation of how the process works. This section of the paper should be one to two pages.

  • Grading for the analysis will be based on the following:

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  • Environmental Scan/Background                                                20 points

Ratio Calculations                                                                                 15 points

  • Free Cash Flow Calculations                                                            8 points

Market Value Added? Economic Value Added                     7 points

  • Capital Budgeting Discussion                                                        15 points

Cost-Volume-Profit Analysis Discussion                                15 points

  • Conclusions                                                                                                10 points

Quality of Writing and Sources                                                     10 points

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BUS 311, Financial Management                    

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Critical Assignment

The critical assignment for BUS 311, Financial Management is one of a series of assignments designed to demonstrate that students have achieved the learning outcomes established for the majors in the College of Business and Management.

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The specific objective of this critical assignment is to assure that students have a sufficient level of accounting and finance skills to conduct financial analyses of an organization. These exercises will provide students with the opportunity to integrate and implement theory to practice and will prepare students to develop a comprehensive business plan in the capstone course during the final year of study.

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For the purpose of this exercise, students will choose a company for which they will conduct an environmental scan and a financial analysis. The analysis of the company should culminate with students recommending that the company is “excellent,” “healthy,” or “ill.” Students will be evaluated based on correctness of the calculations, the insight of the analysis, and the quality of the discussion relating to the requirements.

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Before performing the financial analysis, students will prepare an environmental scan, which will discuss the various forces with which an organization must contend to assure that its business model has a chance for success. 

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The specific calculations should include:

DuPont Identity

  • Current Ratio

Quick Ratio

  • Inventory Holding Period

Average Collection Period

  • Debt Ratio

Dividend Yield

  • Required Rate of Return based on the Capital Asset Pricing Model

Free Cash Flow

  • Market Value Added 

Economic Value Added

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Additionally, students will be expected to prepare an executive summary of the process of capital budgeting, using an example that is specific to the company that is being analyzed. An executive summary of cost-volume-profit analysis is also required, using an example that is specific to the company that is being analyzed.

  • The written paper is to be typed double–spaced, 1’ margins, Times New Roman and 12-point font, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings. The instructor’s approval of the topic is required.