Evaluation of Corporate Performance
The Project will involve an analysis of a company using data from its annual report. Analyze the strengths and weaknesses of McDonalds and write a report either recommending or not recommending purchase of McDonald’s stock.
The completed report should include:
- An introduction to the company, including background information.
- A complete and thorough 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.
- Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
b. Financial leverage
c. Asset management
e. Market value
- Calculate Return on Equity (ROE) using the DuPont system.
- Assess management performance by calculating Economic Value Added (EVA).
- Review of the soundness of the companyâ€™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 â€“ 20 pages long excluding title page and reference page(s) using APA 6th edition formatting guidelines.
Writing the Final Paper
The Final Paper:
- Must be 15 to 20 double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.
- Must include a cover page that includes:
– Title of paper
– Studentâ€™s name
– Course name and number
– Instructorâ€™s name
– Date submitted
- Must include an introductory paragraph with a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must conclude with a restatement of the thesis and a conclusion paragraph.
- Must use at least five scholarly sources.
- Must use APA style as outlined in the approved APA style guide to document all sources.
- Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.