When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….
Ratio and Financial Statement Analysis
Your Initial posting is a Rough Draft of IP4; you need include the name of the publicly traded company you’re researching; financial information can be found on their website or other financial sites such as Yahoo Finance.
Look at the requirements for IP4; you’ll need to provide descriptions of several different financial ratios; these need to be written in your own words and show you understand what these ratios are.
Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:
Give a description of the operating profit margin.
Give a description of the asset turnover.
Give a description of the equity multiplier.
Give a description of the return on equity.
Give a description of the return on assets.
Calculate the operating profit margin. Explain your answer.
Calculate the asset turnover. Explain your answer.
Calculate the equity multiplier. Explain your answer.
Calculate the return on assets. Explain your answer.
Calculate the return on equity. Explain your answer.
What does the DuPont analysis describe about the company chosen?
Which ratio demonstrates the company’s weakest area? Explain your answer.
I do expect at a minimum descriptions of each ratio and a discussion on what Dupont Analysis is and what it says about your firm as well – please review the grading rubric provided for you in chat.
Since this is a rough draft, I don’t expect a fully formed project at this point; so focus on those descriptions and explanations – for your project I will be also grading you on your ratios and your calculations.
Please also remember that References are required; where did you get your information!
For your secondary posting –provide a critique of your classmate’s posting; feedback needs to be helpful and identify what was well done and what might need some work; this is worth 35 points