PRINCIPLES OF FINANCE
You are required to adhere to APA guidelines and to cite your sources. Do not copy tables or material and present them as your own.
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.
1. Introduction. Provide a brief focus statement about your paper and what the reader can expect.
2. Selection of the company. Provide a brief profile of the selected company and your rationale for selecting it.
3. 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.
4. 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.
5. 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.
6. 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.
7. Present value. Calculate present value using applicable present value tables.
8. Summary. Provide a few concluding paragraphs about how your chosen company adheres or does not adhere to sound financial principles.
For this final paper, thoroughly discuss the topics described above and, when possible, provide specific examples or recommendations. Your paper should have at least 10 references from academic books, journal articles, and/or credible online sources.
Your paper should:
Follow academic research approaches and APA citation format, including in-text citations and a References list.
Be well-developed and convey your understanding of the readings and concepts.
PRINCIPLES OF FINANCE