Below are the assignment requirements. Please complete your analysis in a Word document

and include an accompanying Excel spreadsheet with your detailed calculations.

Select a publicly traded company from the below list:

Coca Cola

Deere & Company

IBM

GE

Johnson & Johnson

WalMart

Prepare a paper which discusses the below items.

I.

Company and Competitive Overview:

a.

Company Overview:

State what company you have chosen and provide a brief overview of

the company, explaining what industry and lines of business it is in and other noteworthy

information. (Good sources: Yahoo! Finance company Profile page and the companys

Annual Report.)

b.

Competitive Overview:

Identify the companys primary competitors. You can find this

information in Yahoo! Finance under,

Competitors

. Provide a comparison of several

relevant factors, such as the market cap, number of employees, annual revenue, net income

and other relevant metrics.

1

BA 341 Corporate Financial Management Final Assessment

II.

Financial Performance Analysis:

A.

Perform a ratio analysis to determine how your company is performing versus

one of the competitors you have identified. For your company and the

competitor present the following financial information for the prior three years:

a.

Income Statement

i.

Revenues

ii.

Net Income

b.

Balance Sheet

i.

Total Assets

ii.

Total Debt

iii.

Equity

B.

Using the above financial data calculate the following for both companies for all

three years

a.

Return on Assets (ROA)

b.

Return on Equity (ROE)

C.

Analyze and comment on how your company is doing compared to the

competitor

III.

Stock Valuation

Using the Dividend Valuation Method or DVM (Chapter 10), estimate the value of your chosen

company. As a reminder the DVM formula is:

P0 = D0 * (1 + g) / (r g)

Where:

P0

is the price of the stock today

D0

is the most recent dividend

g

is the dividend growth rate estimate

r

is the cost of equity

A.

Calculating the most recent years dividend (D0):

a.

To start this analysis you will want to get 5 years of dividend payment history for

your company. You can get this information from Yahoo! Finance (

MSFT example

)

and choosing the time period and Dividends Only option. Include this data in your

submission.

b.

What is the total dividend payment for the prior year (you will need to add up the

payments for the year)?

B.

Estimating the growth rate (g):

2