02 Jan Papers should meet professional

Week 1 discussion

1. What is financial reporting and what is financial analysis? How are they different? Which one is more important?

2. What are the basic financial statements? Are some statements more important than the others? If so, why or why not?

3. Obtain the most recent Form 10K report for the company that you selected for the Company Analysis Project. What types of information did you find in the report? What information in the report will be of most value to analysts and shareholders?

4. Should financial analysts approach their work with a degree of skepticism – why or why not? What will be the principal areas of skepticism as you review the Form 10K report for the company that you selected for the Company Analysis Project?

5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 2 discussion

1. Management has latitude under GAAP in selecting accounting methods.

What are some of the areas in which different methods can affect the

reporting of financial results?

2. What are some of the potential warning signs that you see in the Form 10K financial statements for the company that you selected for the Company Analysis Project?

3. Why is it important for an analyst to review the “Auditor’s Opinion” in

a company’s financial statements? What does the Auditor’s Opinion in the Form 10K report for the company that you selected for the Company Analysis Project reveal to shareholders and analysts? Should the Auditor’s Opinion contain more or less information?

4. Why is it important for an analyst to carefully examine the non-recurring transactions including write-downs, accounting changes, and extraordinary items? What write-downs, accounting changes, and extraordinary items are revealed in the Form 10K report for the company that you selected for the Company Analysis Project?

5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 3 discussion

1. Explain the DuPont system of analysis and discuss how analyst can use this process to gain insight about a firm’s performance?

2. Using the company that you selected for the Company Analysis project, and the appropriate financial ratios, present a critical analysis of the firm’s borrowing potential and capacity to repay debt?

3. Is improving bond ratings an important objective for management of the company that you selected for the Company Analysis Project, and why?

4. Is it appropriate to consider short-term debt in addition to long-term obligations when evaluating financial leverage? Using data for the company that you selected for the Company Analysis Project, show what difference it makes?

5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 4 discussion

1. Explain the significance of the Enterprise Valuation measure? Do you think it is useful? Why or why not?

2. Using the Enterprise Valuation model (provided by the Instructor) determine the EV of the company that you selected for the Company Analysis Project?

3. How does the EV of the company you selected for the Company Analysis Project compare to the competitors that you included in the analysis?

4. What distributions has the company that you selected for the Company Analysis Project made during most recent three years? How do those distributions compare to competitors? Should the amounts be increased or decreased and why?

5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 5 discussion

1. Prepare a critical analysis of the statement of cash flows in the Form 10K report for the company that you selected for the Company Analysis Project. Using actual financial data, explain the strengths and weaknesses of the company’s cash flows over the past (most recent) 3 years?

2. Calculate the most important cash flow ratios for the company that you selected for the Company Analysis Project for the past 3 years and compare the ratios to the firm’s principal competitors? What strengths and weaknesses are noted in the analysis?

3. For the company that you selected for the Company Analysis Project, explain the differences in cash flows and net income for each of the most recent 3 years?

4. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 6 discussion

1. Discuss the difference between NOPAT and net income and explain which one is the better measure of a company’s performance, and why?

2. Calculate the Economic Value Added for the company that you selected for the Company Analysis Project and critically evaluate the result?

3. Should the company that you selected for the Company Analysis Project borrow more money because of the tax benefit from interest payments? Why or why not (use actual financial data to support the analysis)?

4. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 7 discussion

1. Explain how you would rank the 4 C’s of credit analysis in order of importance and explain your rankings?

2, What are the most important covenants for creditors to include in loan agreements with borrowers and why?

3. There is a fundamental flaw in the credit rating agency process – the issuer of securities pays for the rating? How can this fundamental flaw be repaired going forward and why is that the best solution compared to other alternatives?

4. If you were the CEO of a financially-troubled company, what changes would you make in the operating and financial strategies to avoid bankruptcy and improve future performance?

5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?

Week 8 discussion

1. Based on your term-long study of financial statement analysis, briefly discuss 5 principal indicators (financial and operational) of a healthy company? What are 5 indicators that a company may be in poor financial health?

2. Based on your class-long study of the company that you selected for the Company Analysis Project, what are the most important financial strengths of the company? What are the most significant financial weaknesses? What were the most surprising things that you learned about the firm?

3. Most Important Things Learned – What are the most important things you learned from the preparation and completion of the Company Analysis Project?

Part 1 Accounting Analysis (Week 2):

Each student should select a company that is publicly traded on the NASDAQ or NYSE Euronext stock exchange. The company must have significant international operations. Each student must select a different company.

Assuming the role of an entering corporate officer, complete an accounting analysis based on the Week 1 and Week 2 assigned readings and other materials that can be located.

This analysis should reflect a review of at least a three-year period of fiscal years ending with the most recently published Form 10K report.

Writing Instructions:

The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be limited to four separate items preferably presented in the written analysis.

Required Organization of Paper:

The following subheadings are to be used and the following topics must be addressed in the paper:

Introduction – The introduction needs to review the assignment or purpose of the paper. It also needs to include an overview of the contents that follow.

Presentation of the Accounting Analysis – Develop and present the basic accounting analysis for the company.

It is necessary to prepare and incorporate a table (tables are always numbered, titled, and show the source of the information) of the relevant criteria being examined in the accounting analysis and their present status. Additional information can be included in the table. These data are to be presented in a table (numbered and titled and that shows the sources). The data are then to be discussed and explained in an accompanying written analysis.

Strengths and Weaknesses Analysis – This section needs to present a careful analysis of the strengths and weaknesses demonstrated by the accounting analysis. This section needs to conclude with a paragraph or two that explain and interpret what the analysis means on an overall basis and as the observations and conclusions are considered collectively.

Summary – Prepare a brief summary of the analysis and key findings.

References – Must clearly demonstrate use of a variety of the assigned readings and supplemental material.

Evaluation:

15% of final course grade.

Completeness of analysis:

The analysis must demonstrate understanding of accounting analysis. Use of academic and professional databases, business periodicals, analyst reports, and news articles, such as those in the UMUC library, must be included in this company accounting analysis.

Organization:

The paper should be well-organized and follow a logical pattern of analysis and discussion.

Presentation:

Papers should meet professional business standards and meet APA formatting requirements.

Spelling, punctuation, and grammar:

There should not be errors in grammar and punctuation. All sentences must be complete and well-structured.

Submission and Format: The completed paper is to be submitted to the “Gradebook” location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment.

The paper is also to be submitted to the Online Classroom. This will allow students to examine and discuss the various projects.

Part 2 Financial Ratio Analysis (Week 4):

Assuming the role of an entering corporate officer, complete a financial ratio analysis for the company that was selected for the Company Analysis Project based on the Week 3 and Week 4 assigned readings and other materials that can be located.

This analysis should reflect a review of at least a three-year period of fiscal years ending with the most recently published Form 10K report.

Writing Instructions:

The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be limited to four separate items preferably presented in the written analysis.

Required Organization of Paper:

The following subheadings are to be used and the following topics must be addressed in the paper:

Introduction – The introduction needs to review the assignment or purpose of the paper. It also needs to include an overview of the contents that follow.

Presentation of the Ratio Analysis – Develop and present the ratio analysis for the company. It must include data for at least the most recent 3 years. Additional years should be included if available. The ratio data must include appropriate Solvency, Profitability, Activity, Capitalization, and Market Ratios.

It is necessary to prepare and incorporate a table(s) (tables are always numbered, titled, and show the source of the information) of the relevant criteria being examined in the ratio analysis and their present status. There must be comparisons to competitors or industry standards. Additional information can be included in the table. These data are to be presented in a table (numbered and titled and that shows the sources). The data are then to be discussed and explained in an accompanying written analysis.

Strengths and Weaknesses Analysis – This section needs to present a careful analysis of the strengths and weaknesses demonstrated by the ratio analysis. This section needs to conclude with a paragraph or two that explain and interpret what the analysis means on an overall basis and as the observations and conclusions are considered collectively.

Summary – Prepare a brief summary of the analysis and key findings.

References – Must clearly demonstrate use of a variety of the assigned readings and supplemental material.

Evaluation:

15% of final course grade.

Completeness of analysis:

The analysis must demonstrate understanding of financial ratio analysis. Use of academic and professional databases, business periodicals, analyst reports, and news articles, such as those in the UMUC library, must be included in this company accounting analysis.

Organization:

The paper should be well-organized and follow a logical pattern of analysis and discussion.

Presentation:

Papers should meet professional business standards and meet APA formatting requirements.

Spelling, punctuation, and grammar:

There should not be errors in grammar and punctuation. All sentences must be complete and well-structured.

Submission and Format:

The completed paper is to be submitted to the “Gradebook” location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment.

The paper is also to be submitted to the Online Classroom. This will allow students to examine and discuss the various projects.

Part 3 Credit Analysis (Week 7):

Assuming the role of an entering corporate officer, complete a credit analysis for the company that was selected for the Company Analysis Project based on the Week 5, Week 6, and Week 7 assigned readings and other materials that can be located.

This analysis should reflect a review of a at least a three-year period of fiscal years ending with the most recently published Form 10K report.

Writing Instructions:

The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be limited to four separate items preferably presented in the written analysis.

Required Organization of Paper:

The following subheadings are to be used and the following topics must be addressed in the paper:

Presentation of the Credit Analysis – Develop and present the basic credit analysis for the company.

It is necessary to prepare and incorporate a table (tables are always numbered, titled, and show the source of the information) of the relevant criteria being examined in the credit analysis and their present status. Make sure that the criteria cover the 5 C’s of credit analysis. Additional information can be included in the table. These data are to be presented in a table (numbered and titled and that shows the sources). The data are then to be discussed and explained in an accompanying written analysis.

Strengths and Weaknesses Analysis – This section needs to present a careful analysis of the strengths and weaknesses demonstrated by the credit analysis. This section needs to conclude with a paragraph or two that explain and interpret what the analysis means on an overall basis and as the observations and conclusions are considered collectively.

Summary – Prepare a brief summary of the analysis and key findings.

References – Must clearly demonstrate use of a variety of the assigned readings and supplemental material.

Evaluation:

15% of final course grade.

Completeness of analysis:

The analysis must demonstrate understanding of credit analysis. Use of academic and professional databases, business periodicals, analyst reports, and news articles, such as those in the UMUC library, must be included in this company accounting analysis.

Organization:

The paper should be well-organized and follow a logical pattern of analysis and discussion.

Presentation: Papers should meet professional business standards and meet APA formatting requirements.

Spelling, punctuation, and grammar:

There should not be errors in grammar and punctuation. All sentences must be complete and well-structured.

Submission and Format: The completed paper is to be submitted to the “Gradebook” location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment.

The paper is also to be submitted to the Online Classroom. This will allow students to examine and discuss the various projects.

Part 4 Executive Summary of Phased Company Analysis Project (Week 8):

Prepare an executive summary integrating the observations and findings of the previous three detailed project reports (accounting analysis, ratio analysis, and credit analysis).

Combine Executive Summary With the Three Previous Assignments:

After the Executive Summary is completed, add the other three sections (Accounting Analysis, Ratio Analysis, and Credit Analysis) to complete the comprehensive report. Submit the completed comprehensive report to the Gradebook and post a copy in the Online Discussion.

Writing Instructions:

The Executive Summary should be two to three pages in length, double spaced, and should employ APA style and format for reference citations.New material is not normally introduced in the Executive Summary.

Evaluation:

15% of final course grade.

Completeness of analysis:

The analysis must demonstrate understanding of the three previous reports including the accounting analysis, ratio analysis and the credit analysis.

Organization:

The Executive Summary should be well-organized and follow a traditional pattern of analysis and presentation (see classroom material about writing executive summaries).

Presentation:

Papers should meet professional business standards and meet APA formatting requirements.

Spelling, punctuation, and grammar:

There should not be errors in grammar and punctuation. All sentences must be complete and well-structured.

Submission and Format:

The completed paper is to be submitted to the “Gradebook” location designated for the assignment. The paper must be in Word format otherwise no credit is earned for the assignment.

The paper is also to be submitted to the Online Discussion Conference. This will allow students to examine and discuss the various projects.