Finance - First, Second and Third Assignment 2015

Question # 00093736 Posted By: Prof.Longines Updated on: 08/18/2015 01:55 AM Due on: 08/26/2015
Subject Finance Topic Finance Tutorials:
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First Assignment


First Assignment

Go to www.cnbc.com and explore the video tab by using the key termsreportingandestimate. As you learned in this unit, there are various sources of information. Watch at least two videos you find, list the videos you viewed and provide a summary of the type of information that the video contained, and how it relates to this unit.

Please include the name of the person or question to which you are replying in the subject line. For example, "Tom's response to Susan's comment."

The videos I choose to watch pertained to estimates, as companies have to estimate or project there earnings to help investors ensure the viability of the company and the stock they sell, I found this to be interesting.

The first video spoke of 21stCentury Fox, the media mogul and how they fell short of their estimates of gross revenue. This in turn affected there EPS (earnings per share), and the impact it has on a company to estimate and report the correct values, and what happens when this is done poorly. As an investor knows that nothing is a guarantee, and they expect variances in what is estimated versus reported. Estimate is just that it is what a company is guessing (educated) that there revenue or sales may be. Reporting is actually reporting the numbers after the fact, therefore the closer the estimate is to what is reported the more accurate or valid the company appears.

The second video spoke of GM and the percentage increase in sales revenue, again with it being higher than what was projected it is having a positive impact on the EPS of the company, therefore drawing in potential investors and increasing cash flow.

http://www.cnbc.com/id/15840232/?&

http://www.cnbc.com/id/15840232/?&

Second assignment

Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Define the main categories of ratios used in analysis and provide one example of each (with the equation).

Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Explain the weaknesses of ratio analysis.

Third Assignment

Unit II Problem Solving

Part 1

For this assignment you will conduct a comparative DuPont analysis of two companies. Using a search engine, find one large corporation included in the S&P 500. Then, find one of its largest competitors. Go to the investor relations portion of each corporation’s homepage and find their most recent annual report. Complete a DuPont analysis by calculating the ROE, ROA, the profit margin, total asset turnover, and equity multiplier. Also, critique the differences between the two corporations in approximately 100 words.

Part 2

Using the most recent income statements (annual) for the two corporations from Part 1 of the assignment, calculate a common size analysis. Then, discuss the differences in the two corporations in approximately 75 words. Insert your 75- word discussion just below your analysis.

Be sure to show all of your work for the calculations. Save and submit Part 1 and Part 2 together in one Word document.

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Tutorials for this Question
  1. Tutorial # 00088134 Posted By: Prof.Longines Posted on: 08/18/2015 01:56 AM
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