I. Definitions: Define any ten terms. Give examples where pertinent.
Finance Primary market
Deficit Secondary market
Percentage point(s) Debt
Return Equity
Capital Market Financial Intermediary
XXXXXXXXXXInstitutional Investors Source of Funds
XXXXXXXXXXStock concept Flow concept
II. Financial Analysis
Using the publicly traded company that you have been reviewing, address the following:
1. Give a profile of the company. What is its dominant source of revenue ?
XXXXXXXXXXCompare the following to the industry average, or to a comparable
XXXXXXXXXXCompetitor:
XXXXXXXXXXTotal sales (latest year)
Total assets (end of last fiscal year)
XXXXXXXXXXMarket capitalization (give specific date)
2. Review the Income statement over the last three fiscal years.
What has changed ?
XXXXXXXXXXTo what can you attest the change ?
3. Review the Balance sheet over the last two years (end of fiscal years).
What has notably changed?
XXXXXXXXXXUse the Statement of Cash Flow to explain changes in the
Balance sheet. Review this statement, and explain the
change in the cash account.
4. Using fundamental analysis, review the crucial ratios in the following
categories:
XXXXXXXXXXLiquidity
XXXXXXXXXXAsset management
XXXXXXXXXXDebt
XXXXXXXXXXInterest coverage
XXXXXXXXXXProfitability
Please be sure to compare your calculations for your company to a
competitor or to the industry average.
What do you anticipate will be the outcome for the company by the end
of the cu
ent fiscal year ? Do you forecast improvement or loss ?
NOTES:
1. Be sure to include at least a summary of the pertinent financial
XXXXXXXXXXstatements as back-up to your analysis. These should include the
XXXXXXXXXXIncome statements, Balance sheets, and Statement of Cash Flow.
2. Show your ratio calculations (at least the set-up). Be aware of
Annualizing income statement items where necessary.
1