Your specific assignment is to conduct research, analyze, and prepare a report for the CFO on the actual financial performance of the company that you choice for the years 2009, 2010, and 2011. In addition to reviewing the traditional financial performance indicators, you are also to review the companies past and current stock performance for the same periods. Your report is to consist of three parts:
1. an evaluation of the company’s financial performance for the periods 2009, 2010, and 2011
2. an evaluation of the company’s stock performance for the periods 2009,
2010, and 2011
3. finally, a specific recommendation, with supporting rationale, as to whether or not the company’s recent financial and stock performance are of sufficient financial strength to warrant entering into a long-term commitment with the company
To assist you in your task, the CFO has provided the following general guidance. As it is recognized that the many companies are undergoing a major contraction, it is very important for you to compare the company’s financial and stock performance trends with those of the industry. You are to consider all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. Relevant factors include, but are not necessarily limited to, financial statement analyses, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports, when these documents are available.
Your final report is to be an executive-level financial report directed to the CFO. This report must be no longer than six (6) single-spaced typewritten pages. Include suitable comparative, quantitative, and qualitative analyses and conclude with a specific and supported recommendation based on the projected financial viability of the company for the next several years.
Essential research data, financial calculations, and other documentation needed to support your recommendation should be referred to in summary form in your report and attached in detail as enclosures. All major sources should be referenced. There is no set limit to the size of the enclosures, but it is recommended that only essential enclosures be attached. You should use references and a bibliography to identify any remaining supporting documents you wish to include.
Your report is to be submitted electronically and limited to a maximum of three, one for the executive report, one for attachments and one for power point presentation. Two files are acceptable, with attachments included as separate pages at the end of your report. Only Word, Plain Text, Rich Text, and Excel file formats are acceptable.
This report is a group effort and must be researched, developed, and prepared by the entire group. However, to maximize the learning benefit, you are encouraged to share freely and exchange sources of information (Web sites), general approaches, alternatives, and information on general financial theory and applicability as related to the report with other teams.
All questions related to this assignment should be referred to the mythical CFO (i.e., me).