2024 – Evaluation of Corporate Performance The Project will involve an analysis of a company using data from its annual report

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:

1. Liquidityb.      Financial leverage

   c.       Asset management

   d.      Profitability

   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 company’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 – 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

  – Student’s name

  – Course name and number

  – Instructor’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.