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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
You are a financial analyst for the chosen business that you selected during your Module Two Journal
assignment. Your supervisor has discovered last minute that your business’s board of directors is looking for
updates on the business’s financial health. Your supervisor has asked you to write a report regarding the
business’s current financial health and the available financial options for improving the business. You’ve also
been asked to make recommendations as to which options the business should choose to best support its
financial health. Your supervisor will then use your report to present to the business’s board of directors, whose
members all have varying levels of knowledge in terms of finance.
Directions
Using the business you chose from the Project Two Business Options List, create a report for your supervisor
to share with the board of directors during their presentation. Keep in mind that your report needs to be easy
for someone unfamiliar with finance to understand, as not all of the board members for your business fully
understand finance.
Using Mergent Online, locate the most recent quarterly financial statements for your chosen company, and use
these statements to support your analysis throughout the project. Refer to the Project Two Financial
Assumptions document located in the Supporting Materials section for the assumptions you need in order to
analyze the three available financial options outlined in the Financial Analysis section of the project directions.
You are encouraged to use the Project Two Financial Analyst Report template located in the What to Submit
section to help complete this project.
Specifically, you must address the following:
Financial Analysis: In this section of the report, you will use the most recent quarterly financial statements for
your chosen business and the Project Two Financial Formulas spreadsheet (located in the What to Submit
section) to calculate appropriate financial formulas for assessing the business’s financial health. You will also
analyze all three available financial options for improving the business based on your calculations and the
provided Project Two Financial Assumptions document.
Financial Calculations: Calculate accurate financial formulas to assess the business’s current financial health.
Specifically, you must calculate the following:
Working capital
Current ratio
Debt ratio
Earnings per share
Price/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 the business’s
operations. Provide examples to support your claims.
Bond Investment: Analyze the risks and benefits of the business choosing to invest in a corporate bond,
including the necessary ethical considerations, appropriate calculations, and examples to support your
analysis.