Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

glass
pen
clip
papers
heaphones

Claflin University Common Size Balance Sheet & Income Statement Worksheet

Claflin University Common Size Balance Sheet & Income Statement Worksheet

Question Description

I’m working on a finance case study and need an explanation to help me learn.

Assignment #1 ( Use Netflix NFLX and Disney DSNY for the two companies)

For this assignment, each of you should choose two companies. When you choose two companies, you should make sure that the two companies are from the same industry. One company is considered your company and the other is considered a competitor. Once you make a decision about two companies, you should let me know what your choices are via email before you proceed.

The following are the questions you should answer. You can find the 2019 & 2020 Balance Sheet and Income Statement at finance.yahoo.com.

1. (Common-size Balance Sheet & Common-size Income Statement Analysis) (25 points)

1) With 2019 & 2020 balance sheet & Income statement for each company, create common-size balance sheets and common-size income statements.

2) Using 2020 common-size balance sheet and income statement, compare your company with the benchmark, and describe how your company is similar to or different from the benchmark.

3) Using 2019 & 2020 common-size balance sheet and income statement of each company, do the time trend analysis and describe how each company changes over time.

2. (Financial Ratio Analysis) Using 2019 & 2020 Balance sheet & Income statement for each company, compute the following financial ratios for each company: (25 points)

1) Current ratio

2) Quick ratio

3) Debt-to-equity ratio

4) Times interest earned ratio (Interest coverage ratio)

5) Inventory Turnover

6) Receivable turnover

7) Total asset turnover

8) Profit margin

9) Return on Asset (ROA)

10) Return on Equity (ROE)

11) Price-earnings ratio

12) Market-to-book ratio

3. (Financial Ratio Analysis) Select the benchmark for peer group analysis. You’ll use two kinds of benchmarks in this assignment. One is your competitor’s ratios and the other is industry averages (you can find industry averages from finance.yahoo.com or www.reuters.com or investing.money.msn.com). Make sure that you cite the source of industry averages. (25 points)

1) Using the 2020 ratios from Question 2, compare your company’s ratios to both competitor’s and industry averages. Then describe how good or bad ratios of your company are considered.

2) Using 2019 & 2020 ratios for your company, compare your company’s 2019 ratios with 2020 ratios and describe the similarities and differences.

4. (DuPont Identity) (25 points)

1) Using the DuPont Identity equation, compare your company’s 2020 ROE with competitor’s 2020 ROE. Find out what makes differences in ROEs between your company and competitor.

2) Using the DuPont Identity equation, compare your company’s 2019 ROE with 2020 ROE. Find out what makes differences in ROE between two periods if there is any difference.

Please submit your assignment as an Excel format documents using the link provided.


This is the 3rd assignment. This assignment is directly related to chapter 6. Answer the following questions:

Using two companies you chose for your 1st assignment, you should answer the following questions. Please make sure that you should show your work to earn credit.

1. Using the past dividend payout information between 2016 and 2020, compute the growth rate (g) for these companies. Your companies must have a complete history of dividend payout during these periods. You can find such information atwww.dividendinformation.com. If your company lacks the dividend payout information, you need to select a new company (40 points).

2. First, let’s assume that the required return (R) is 10% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies. Second, let’s assume that the required return (R) is 20% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies (40 points).

3. Compare your estimated stock prices with actual stock prices as of January 4, 2021. Then tell me whether each stock is undervalued or fairly-valued or overvalued based on your estimation. What’s your decision if you hold these stocks? What’s your decision if you don’t hold these stocks? (20 points).


Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Gold Grades only hire the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Gold Grades are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Gold Grades is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Gold Grades, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.