Week 6 – Final Paper

NIKE CORPORATION

Evaluation of Corporate Performance

The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock. The completed report should include:

· An introduction to the company, including background information.

· A financial statement review.

· Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.

· A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:

· Liquidity

· Financial leverage

· Asset management

· Profitability

· Market value

· Calculate Return on Equity (ROE) using the DuPont system.

· Assess management performance by calculating Economic Value Added (EVA).

· Evaluate the soundness of the company’s financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.

· A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

This report should be 15 to 20 pages long, excluding title page and reference page(s), using APA 6th edition formatting guidelines. Support your findings and recommendations with evidence from at least five scholarly sources in addition to the annual report, such as the textbook, industry reports, and articles from the Ashford University Library. Be sure to include links to websites that were used as references or to access company information.

The Final Paper

· Must be 15 to 20 double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).

· Must include a separate title page with the following:

· Title of paper

· Student’s name

· Course name and number

· Instructor’s name

· Date submitted

· Must begin with an introductory paragraph that has a succinct thesis statement.

· Must address the topic of the paper with critical thought.

· Must end with a conclusion that reaffirms your thesis.

· Must use at least five scholarly sources.

· Must document all sources in APA style, as outlined in the Ashford Writing Center.

· Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.

Articles

Ang, J.S. (1993). On Financial Ethics. Financial Management, Autumn, (1993), 32 – 59. Retrieved from ProQuest Database.

Fama & French (1992). The Cross Section of Expected Stock Returns. Journal of Finance (47), 427 – 46.  Retrieved from ProQuest Database.

Mergent. (n.d.). Mergent Online Quick Tips. Mergent Online. Retrieved from Online Ashford Library.

Mergent Database for Company and Industry Research.  To access go to the Ashford Library and select “Find Articles and More” in the top menu panel.  Next, select “Databases A-Z” and go to section “M” for “Mergent”.

Modigliani & Merton (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 261 – 297.  Retrieved from JSTOR database.

Financial Statements – Guide to an Annual Report (Links to an external site.). (n.d.). Retrieved from http://www.moneychimp.com/articles/financials/fundamentals.htm

Website

Moneychimp (Links to an external site.). (http://www.moneychimp.com/articles/financials/fundamentals.htm)

Text

Byrd, J., Hickman, K., & McPherson, M. (2013).  Managerial finance  [Electronic version]. Retrieved from https://content.ashford.edu/

· This text is a Constellation™ course digital materials (CDM) title.

Article

Biery, M.E. (2013, April 12). Businesses seeking working capital—Survey (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/sageworks/2013/04/12/businesses-seeking-working-capital-survey/

Multimedia

BusinessQldGov. (2014, April 10).  Identifying business risk – Risk management series (Links to an external site.)  [Video file]. Retrieved from https://www.youtube.com/watch?v=cZwyIPGhF_U

Films Media Group. (Producer). (2011). Microeconomics: Understanding the market system (Links to an external site.) [Video File]. Retrieved from https://secure.films.com/OnDemandEmbed.aspx?token=48959&aid=18596&plt=FOD&loid=0&w=560&h=315&fWidth=580&fHeight=365

Wiley CMAexcel (2016, February 10).  Free CMA exam lesson: Capital budgeting process (Links to an external site.). Retrieved from https://www.youtube.com/watch?v=h_ouhhkEaKg

INTELECOM. (Producer). Management of Working Capital Case Study: “George’s Trains”. [Video File]. Retrieved from the Intelecom Video Library.

Website

Network Status – MSN Money (Links to an external site.). (n.d.). Retrieved from http://investing.money.msn.com/investments/key-ratios