Managerial Finance project

Assignment Requirements

 

Course Project
Managerial Finance Project


CASE DESCRIPTION
Congratulations! You’ve just been named the Chief Financial Officer of a publicly traded company of your choice. And you’ve been hired just in time; the company is looking to expand into an international market and needs help deciding where, when, and how to begin this operation.
The CEO has asked you to research a country in which the company could expand and the financial feasibility of this venture, keeping in mind that the company still needs to sustain its current operations in the United States. If the company produces several products, the CEO also wants you to choose one product that the company could sell and produce in the new country. Once you have reviewed the company’s finances, made appropriate financial calculations and forecasts, and researched the new country, the CEO wants you to submit a final report with your recommendations supported by your research.
PROJECT INSTRUCTIONS
You will create a financial report to submit to your company’s CEO. The report must contain all the numbered items listed below in order. You want to make sure the CEO knows what each document is and why it is in the report, so be sure to introduce each numbered section with an appropriate title page and include page numbers. Submit the report as one document.
Before you begin, choose the company that you work for. Included with the project instructions is a list of 10 companies and links to their websites. You can choose any company on the list for the project. If there is a particular company you’d like to use instead, feel free to choose your own.
Submit the following items in order:


Course Project
Managerial Finance Project
1. An introduction that gives the background information on the company’s history, current product line, product or brand identity, overseas subsidiaries (if any), and current US and international market share. This introduction should be written in paragraph form and will be between one to two pages.
2. Copies of the company’s financial statements from the past five years, including the current year. You can find this information on via the links provided to the companies’ websites. If you have chosen your own company, be sure to check that you have access to the company’s financial statements before starting the project.
3. An evaluation of the company’s financial stability. This section of the report will include the following components:
a. Your assessment of the company’s financial stability. Analyze the company’s current financial position, explaining if you think the company has adequate cash flow and assets to expand internationally while sustaining operations in the United States and referencing the calculations included in subsections b, c, and d. This overview should be written in paragraph form and will be between two to three pages.
b. Calculations of the company’s operating income, income before taxes, net income, earnings per share, and retained earnings for the current year. You can find the information you need to complete these calculations by looking at the company’s current financial statement. For each figure, include the formula you used and identify the items you used from the financial statements.
c. Calculations of the company’s sales growth rate, tax rate, and dividends payout ratio data using financial statements from the past five years. For each figure, include the formula you used and identify the items you used from the financial statements.
d. Calculations and explanations for each ratio used to determine the company’s financial stability. Though you will choose which ratios to use, be sure to include ratios from each type of analysis (liquidity, leverage, profitability). For each ratio, include the formula you used to calculate the ratio and identify the items you used from the financial statements. Then write a paragraph explaining why you chose to use this ratio to determine the company’s financial stability. What does this ratio tell you about the company’s financial health and why is this information necessary for the evaluation?
4. An evaluation of the country that you recommend for expansion. This section of the report will include the following components:

Course Project
Managerial Finance Project
a. Your recommendation for where you think the company should expand its operations and which product it should produce and sell. Included with the project instructions is a list of three places for potential expansion and links to their demographic, governmental, and economic information. Recommend that the company expand into one of these places. Support this recommendation with analysis about the country’s demographics, explaining what the target market is for the product and why the product would succeed in this specific country. Consider elements such as the retail price of the product, what it’s used for, and who in the new country would want it. (Example: If you are a toy company that is going to sell and produce tricycles that retail for $50, then you need to consider a country where wages are high enough that people can afford expensive toys and there are many children.) If there is a country not on the list that you’d like to recommend instead, you may do so, but you still must provide the information and analysis. This should be written in paragraph form and one to two pages. Be sure to cite where you found your data using APA format.
b. Your evaluation of how the country’s current trade policies, sanctions, taxes, tariffs, and other information used by regulatory authorities in the country could affect the financial success of the expansion. Again, if you choose a place on the provided list, you can find this information by following the included links. Also include information on the relationship between the country and the United States. Are there any embargos? Boycotts? Wars? All of these can halt operations and/or cut supply of materials and inventory needed to produce a product, which could create an immediate loss for the emerging product. Explain any potential problems, or if you don’t anticipate any problems, explain why. This should be written in paragraph form and one to two pages. Be sure to cite where you found your data using APA format.
5. A forecast of how the company will fare financially as a result of the expansion. This section of the report will include the following components:
a. Pro forma financial statements (income statements and balance sheets) for the first five years of expanded operations. Use the country’s demographic data from section 4 to help identify probable income. Again, if you choose a place on the provided list, you can find this information by following the included links. In making your projections, consider the average real estate prices and potential monthly payments for a suitable building in the new place, estimated payroll based upon current payroll trends within the new place, and marketing expenses to establish the product line, as well as how inflation rates, anticipated income taxes rates, or other information may affect the company’s financial situation during the expansion.

Course Project
Managerial Finance Project
b. Calculations on the sales growth rate, tax rate, and dividends payout ratio based on the information provided in the pro‐forma financial statements. For each figure, include the formula you used and identify the items you used from the financial statements.
c. Calculations of the estimated value of the company’s common and/or preferred stock. (Tip: This information can be found via the company’s website or Hoovers.com.) To find these values, you will use formulas such as earnings per share, retained earnings, and shareholder’s equity. For each figure, include the formula you used.
d. Using the stock calculations and the pro‐forma financial statements, create an itemized report on the anticipated transfer of all assets (cash, property, stocks, and bonds) from the parent company to sustain operations of the subsidiary. Be sure to also show the balance of those itemized assets still held by parent company to sustain U.S. operations and provide explanation on how the assets were divided.
6. A conclusion that summarizes your main findings and your recommendations for expansion based on your financial analysis. This should be written as a report that will be given to the CEO and Board of Directors. In it, you must use the results from your financial calculations to support your recommendation. Be sure to address the potential profit, loss, international market issues, and international laws. You should also address how this expansion could be influenced by or influence other global trade and expansion within your market. This should be written in paragraph form and three to four pages.
LIST OF COMPANIES
Below is a list of 10 companies and links to their annual reports, which include their financial statements. Choose a company on the list to use for your project. You may choose a company not on the list, but if you do, be sure you have access to all the necessary financial information before beginning the project.
The links under each company will take you directly to the financial information. While you are on the website, also check out information about the company’s products and marketing to learn more about its business.
1. Ford Motors: http://corporate.ford.com/our‐company/investors/reports‐financial‐ information/annual‐reports?releaseId=1244753689627

2. Toys “R” Us: http://www.toysrusinc.com/investor‐relations/ (Select “SEC Filings” in left corner. Then select “Annual Filings” in groupings filter.)
3. Microsoft: http://www.microsoft.com/investor/AnnualReports/default.aspx
4. PepsiCo: http://www.pepsico.com/investors/annual‐reports.html
5. Kellogg: http://investor.kelloggs.com/annuals.cfm
6. Starbucks: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol‐reportsannual 7. McDonald’s: http://www.aboutmcdonalds.com/mcd/investors/annual_reports.html
8. Nike: http://investors.nikeinc.com/Investors/Financial‐Reports‐and‐Filings/Annual‐ Reports/default.aspx
9. General Mills: http://phx.corporate‐ir.net/phoenix.zhtml?c=74271&p=irol‐reportsannual 10. Dish Network: http://dish.client.shareholder.com/annuals.cfm
LIST OF INTERNATIONAL LOCATIONS
For sections 4, 5, and 6 of the project, you need to research a country to recommend whether or not your chosen company should expand there. Below is a list of three countries and links to information you need to complete the project. Choose a country on the list to use for your project. You may choose a country not on the list, but if you do, be sure you have access to all the necessary information before beginning the project.
Brazil
CIA World Factbook: https://www.cia.gov/library/publications/the‐world‐factbook/geos/br.html
Index Mundi: http://www.indexmundi.com/brazil/
Colliers International: http://www.colliers.com/en‐US (search for “Brazil” in the upper right search bar) Brazil Investment Guide: http://www.brazilinvestmentguide.com/
Hong Kong
Remember: Hong Kong is a special administrative region of China, not its own country.
CIA World Factbook: https://www.cia.gov/library/publications/the‐world‐factbook/geos/hk.html Index Mundi: http://www.indexmundi.com/hong_kong/
Colliers International: http://www.colliers.com/en‐US (search for “Hong Kong” in the upper right search bar) LowTax: Global Tax & Business Portal: http://www.lowtax.net/lowtax/html/asia_pacific/business/hong_kong_commercial_property.html
Egypt

CIA World Factbook: https://www.cia.gov/library/publications/the‐world‐factbook/geos/eg.html Index Mundi: http://www.indexmundi.com/egypt/
Colliers International: http://www.colliers.com/en‐US (search for “Egypt” in the upper right search bar)

Rubric that needs to be followed to ensure top grade:
Project Rubric
Print
Company Evaluation = 50.0%
EVALUATION ITEM UNSATISFACTORY
0 – 69%
AVERAGE
70 – 79%
ABOVE AVERAGE
80 – 89%
OUTSTANDING
90 – 100%
POINTS
Evaluate the financial stability of a publicly traded company Assessment of the financial stability of a publicly traded company is not accurate or not supported by financial calculations and ratios Assessment of the financial stability of a publicly traded company is somewhat accurate and supported by financial calculations and ratios Assessment of the financial stability of a publicly traded company is accurate and supported by financial calculations and ratios Assessment of the financial stability of a publicly traded company is detailed, accurate, and supported by financial calculations and ratios 10
Calculate a company’s income and earnings potential Operating income, income before taxes, net income, earnings per share, and retained earnings are less than 60 percent accurate or no formulas are included Operating income, income before taxes, net income, earnings per share, and retained earnings are at least 60 percent accurate and include most formulas used Operating income, income before taxes, net income, earnings per share, and retained earnings are at least 90 percent accurate and include formulas used Operating income, income before taxes, net income, earnings per share, and retained earnings are all accurately calculated and include formulas used 10
Calculate a company’s historical financial data Sales growth rate, tax rate, and dividends payout ratio are less than 60 percent accurate or no formulas are included Sales growth rate, tax rate, and dividends payout ratio are at least 60 percent accurate and include most formulas used Sales growth rate, tax rate, and dividends payout ratio are at least 90 percent accurate and include formulas used Sales growth rate, tax rate, and dividends payout ratio are all accurately calculated and include formulas used 10
Choose ratios to assess a company’s financial stability Chosen ratios are not relevant in assessing the company’s financial stability or the student does not explain why each of the chosen ratios are needed for the assessment Chosen ratios are somewhat relevant in assessing the company’s financial stability or the student partially explains why each of the chosen ratios are needed for the assessment Chosen ratios are relevant in assessing the company’s financial stability and the student adequately explains why each of the chosen ratios is needed for the assessment Chosen ratios are relevant in assessing the company’s financial stability and the student fully explains why each of the chosen ratios is needed for the assessment 10
Calculate ratios to show a company’s financial stability Fewer than 60 percent of the chosen ratios are calculated with accuracy At least 60 percent of the chosen ratios are calculated with accuracy, using the most of the correct formulas and line items from the financial statements At least 90 percent of chosen ratios are calculated with accuracy, using the correct formulas and line items from the financial statements All chosen ratios are calculated with complete accuracy, using the correct formulas and line items from the financial statements 10
Country Evaluation = 10.0%
EVALUATION ITEM UNSATISFACTORY
0 – 69%
AVERAGE
70 – 79%
ABOVE AVERAGE
80 – 89%
OUTSTANDING
90 – 100%
POINTS
Evaluate the impact of a country’s demographics and policies on financial success Evaluation does not include information on the country’s current trade policies, embargoes, taxes, and tariffs or does not include an analysis of how these external forces could impact the company’s financial success Evaluation partially includes information on the country’s current trade policies, embargoes, taxes, and tariffs or the analysis of how these external forces could impact the company’s financial success is minimal Evaluation includes information on the country’s current trade policies, embargoes, taxes, and tariffs and a thorough analysis of how these external forces could impact the company’s financial success Evaluation includes information on the country’s current trade policies, embargoes, taxes, tariffs, and additional information from regulatory authorities in the country and a thorough analysis of how these external forces could impact the company’s financial success 10
Financial Forecast = 30.0%
EVALUATION ITEM UNSATISFACTORY
0 – 69%
AVERAGE
70 – 79%
ABOVE AVERAGE
80 – 89%
OUTSTANDING
90 – 100%
POINTS
Create pro forma financial statements Pro forma financial statements do not include accurate income statements and balance sheets for the first five years of operation or calculations for the sales growth rate, tax rate, and dividends payout ratio are less than 60 percent accurate Pro forma financial statements include partially accurate income statements and balance sheets for the first five years of operation and formulas for the sales growth rate, tax rate, and dividends payout ratio are at least 60 percent accurate Pro forma financial statements include accurate income statements and balance sheets for the first five years of operation and formulas for the sales growth rate, tax rate, and dividends payout ratio are at least 90 percent accurate Pro forma financial statements include accurate income statements and balance sheets for the first five years of operation, use accurate formulas for the sales growth rate, tax rate, and dividends payout ratio, and include expanded information on inflation rates, anticipated income taxes rates, or other information which may explain increases or decreases in income, expenses, profits, or loss 10
Itemize the transfer of assets Did not accurately itemize assets (cash, property, stocks, bonds) transferred to subsidiary to establish operations or did not show the balance of those itemized assets still held by the parent company to sustain U.S. operations Accurately itemized at least 60 percent assets (cash, property, stocks, bonds) transferred to subsidiary to establish operations or only partially showed the balance of those itemized assets still held by the parent company to sustain U.S. operations Accurately itemized at least 90 percent of assets (cash, property, stocks, bonds) transferred to subsidiary to establish operations, showing the balance of those itemized assets still held by the parent company to sustain U.S. operations Accurately itemized all assets (cash, property, stocks, bonds) transferred to subsidiary to establish operations, showing the balance of those itemized assets still held by the parent company to sustain U.S. operations, and explained how assets were divided 10
Make business recommendations based on financial analysis The final evaluation does not include recommendations or the recommendations are not supported with financial information and calculations The final evaluation includes minimal recommendations that are sufficiently supported with financial information and calculations The final evaluation includes logical recommendations that are accurately supported with financial information and calculations The final evaluation includes logical and detailed recommendations that are accurately and thoroughly supported with financial information and calculations 10
Rubric Writing Standards Measures = 10.0%
EVALUATION ITEM UNSATISFACTORY
0 – 69%
AVERAGE
70 – 79%
ABOVE AVERAGE
80 – 89%
OUTSTANDING
90 – 100%
POINTS
Articulation
There are multiple writing conventions errors that severely impede

comprehension of the work

There are multiple writing conventions errors that somewhat limit comprehension of the work There are some writing conventions errors, but they do not impede comprehension of the work There are no detectable writing conventions errors 5
APA format and referencing No attempt to cite sources in APA format is evident The source citations have multiple APA formatting errors The source citations have some APA formatting errors Either the source citations follow APA formatting guidelines with no detectable errors, or no source citation was required for this submission 5

 

Order Now

http://zelessaywritings.com/order/

 

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.

 

[order_calculator]