Principle of finance Portfolio Milestone

·         Students will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes section providing details of analysis and synthesis of information to presented points. You must also provide a separate document of exhibits of financial reports analyzed for the Presentation).

Projects will include:

o   Organization overview (work from introduction to finance)

o   Financial statements analysis (work from evaluating financial performance)

o   Analysis of cash flow (work from evaluating financial performance)

o   Stock performance analysis (work from time value of money)

o   Cost of capital or required return on investment (work from risk and return)

o   Value of the organization: book value, common stock value

o   Discussion of appropriate organizational development options with the inclusion of general risk and return scenarios from a management perspectiveThe Portfolio Project is due at the end of Module 14. However, you should be working on it throughout the course. At this time, please email your Instructor with the name of the organization you have selected for your Portfolio Project.

·         Begin work on your Portfolio Project by reviewing your selected organization’s financial statements: Balance Sheet, Income Statement, and Cash Flow Statement. Also, if your organization is publicly held, please review the last filed Auditor’s Opinion in the Annual Report and determines if the auditors have found something in the organization’s financials that seem awry.

·         Analyze the financial performance of your company. Begin by developing a ratio table comparing at least ten financial ratios for the past two years. After the table is completed, draft an analysis of this table assessing the financial condition of the company and explaining your interpretation of the results. Where possible, include comparison of your results to industry averages or industry competitors.
Compare your analysis with explanations provided in the company’s annual report and discuss any areas where you perceive the company may have problems in the future. This will be another section of your Portfolio Project. You do not have to submit your work at this point, but if you need assistance, this is a good time seek help from your Instructor.

·         Analyze the Cost of Capital for your chosen company. Include in this analysis both the CAPM (risk and return) and the WACC calculations. After conducting the calculations, draft an explanation of what the calculations tell you about the company regarding past and future financing decisions.


Also, discuss any differences in the calculations and what they tell you about the methodology. As a conclusion to this section, suggest ways that your company could reduce the cost of capital. This will be another section of your Portfolio Project.

·         You should be wrapping up your Portfolio Project due in risk and return.

·         Students will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes section providing details of analysis and synthesis of information to presented points. You must also provide a separate document of exhibits of financial reports analyzed for the Presentation).

Projects will include:

·         Organization overview.

·          financial statements analysis.

·         Analysis of cash flow.

·         Stock performance analysis.

·         Cost of capital or required return on investment.

·         Value of the organization: book value, common stock value.

·         Discussion of appropriate organizational development options with the inclusion of general risk and return scenarios from a management perspective.

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