ACC 345 Milestone Three Guidelines and Ru
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ACC 345 Milestone Three Guidelines and Ru
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Overview: This milestone will help you complete Section IV of the final project. You will analyze your selected company using SWOT, industry, and economic
analysis. Discuss any emerging trends in technologies that affect your company.
Prompt: Produce a financial statement analysis and valuation report that summarizes the financial health, projected future performance, and estimated value of
the publicly traded (S&P 500) company that you selected at the beginning of the course. As an independent financial accounting analyst working for a major
trade journal, your report is intended to inform a general audience about the overall financial well-being of the company and how it compares to a major
competitor. Your report should cover information of interest to both internal and external stakeholders—summarizing major findings, suggesting ways to
improve operational performance, and assessing investment potential. Keep in mind that
ief, clear communications are essential in effectively reaching
usiness and media audiences.
Specifically, the following critical elements must be addressed:
I. Industry and Economic Analysis. This section will focus on evaluating the selected company’s industry, its market structure, competitors, supply and
demand, regulations, outlook or forecast, and other relevant factors specific to that industry. The section should also cover macro and microeconomic
trends. This considers cu
ent monetary policy, GDP growth, the cu
ent economic health of the country of origin, and/or the company's global
presence, all of which are relevant for valuing a company.
A. General economic overview. This will explore trends in economic indicators. It will also cover output of goods and services produced by the
domestic and global economy.
i. Economic output and consumption. Identify national trends that could impact your chosen company or its industry as a whole based on
macroeconomic qualitative data.
ii. Cu
ent monetary and trade policy. Evaluate upcoming changes to policies or regulations that would impact your selected company or
its industry.
iii. Explain relationships these policies and regulations would have with the company’s sales or expenses.
B. Industry analysis. This piece involves researching the industry in which the target company operates to understand its strengths, weaknesses,
opportunities, and threats. It will explore the following issues:
i. Supply and demand. Ascertain key supply and demand issues relevant to your company's industry, pinpointing critical issues that could
enefit or harm your chosen company's operations.
ii. Market share and competitive landscape. Approximate your company's market share within its own industry, and distinguish its
strengths and weaknesses from those of its major competitors.
iii. Regulation. Evaluate new regulation that is specific to your chosen company's industry, and determine whether it benefits or harms
your company.
iv. Employment issues. Explain how the labor markets and the constraints that exist impact your company’s operations.
v. Industry outlook. Determine how industry trends and relevant emerging technologies impact your chosen company's industry in the
future.
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Guidelines for Submission: Your milestone should be completed using the Economic Outlook Section of the Business Valuation Report template. Sources should
e cited according to APA Style. For the analysis, use and submit the pertinent sections of the Business Valuation Model Excel file. Include a link to the chosen
company’s financial information for confirmation purposes.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Industry and Economic Analysis:
General Economic Overview:
Output and Consumption
Identifies national trends that could
impact the chosen company or its
industry as a whole based on
macroeconomic qualitative data
Identifies national trends that could
impact the selected company but does
not base findings on macroeconomic
qualitative data
Does not identify national trends that
could impact the chosen company or
its industry
12
Industry and Economic Analysis:
General Economic Overview:
Monetary and Trade Policy
Evaluates upcoming changes to policies
or regulations that would impact the
selected company or its industry
Evaluates upcoming changes to policies
or regulations, but response contains
e
ors or is inaccurate
Does not evaluate upcoming changes
to policies or regulations
12
Industry and Economic Analysis:
General Overview: Policies and
Regulations
Explains the relationships the policies
and regulations would have with the
company’s sales or expenses
Explains the relationships the policies
and regulations would have with the
company’s sales or expenses, but
explanation is cursory, contains e
ors,
or is inaccurate
Does not explain the relationships the
policies and regulations would have
with the company’s sales or expenses
12
Industry and Economic Analysis:
Industry Analysis: Supply and
Demand
Ascertains key supply and demand
issues relevant to the selected
company’s industry and pinpoints
critical issues that could benefit or
harm the company
Ascertains key supply and demand
issues relevant to the selected
company’s industry but does not
pinpoint critical issues that could
enefit or harm the company
Does not ascertain key supply and
demand issues nor pinpoint critical
issues that could benefit or harm the
company
12
Industry and Economic Analysis:
Industry Analysis: Market Share
and Competitive Landscape
Approximates the selected company’s
market share within its own industry
and distinguishes its strengths and
weaknesses from its major competitors
Approximates the selected company’s
market share within its own industry
ut does not distinguish its strengths
and weaknesses from its major
competitors
Does not approximate the selected
company’s market share within its own
industry nor distinguish its strengths
and weaknesses from its major
competitors
12
Industry and Economic Analysis:
Industry Analysis: Regulation
Evaluates new regulation that is
specific to the chosen company’s
industry and determines whether it
enefits or harms the company
Evaluates new regulation that is
specific to the chosen company's
industry but does not determine
whether it benefits or harms the
company
Does not evaluate new regulation that
is specific to the chosen company’s
industry nor determine whether it
enefits or harms the company
12
Industry and Economic Analysis:
Industry Analysis: Employment
Issues
Explains how the labor markets and the
constraints that exist impact the
selected company's operations
Explains how the labor markets and the
constraints that exist impact the
selected company’s operations, but
esponse contains e
ors or is illogical
Does not explain how the labor
markets and constraints that exist
impact the selected company’s
operations
12
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Industry and Economic Analysis:
Industry Analysis: Industry Outlook
Determines how industry trends and
elevant emerging technologies will
impact the chosen company’s industry
in the future
Determines how industry trends and
elevant emerging technologies will
impact the chosen company's industry
in the future, but response contains
e
ors or is illogical
Does not determine how industry
trends and relevant emerging
technologies will impact the chosen
company’s industry in the future
12
Articulation of Response Submission has no major e
ors related
to citations, grammar, spelling, syntax,
or organization
Submission has major e
ors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
eadability and articulation of main
ideas
Submission has critical e
ors related to
citations, grammar, spelling, syntax, or
organization that prevent
understanding of ideas
4
Total 100%
ACC 345 Milestone Three Guidelines and Ru
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Ru
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ACC 345 Business Valuation Report Template
Summary Business Valuation Report of
Tesla Inc.
Tesla Inc.
Report Date, 2021
Contents
INTRODUCTION 3
Nature, Background, and History 4
Facilities 4
Customers 4
Management 4
Competition 4
Strengths and Weaknesses 4
Ownership 4
Major Shareholder Transactions 4
Business Risks 4
FINANCIAL ANALYSIS 5
Financial Analysis Overview 5
Balance Sheets 5
Assets 5
Liabilities 5
Stockholder’s Equity 6
Income Statements 6
Normalization Adjustments 6
ECONOMIC OUTLOOK 7
Industry Analysis 7
Industry Overview 7
Competitive Landscape 7
Products, Operations and Technology 7
Sales and Marketing 7
Finance and Regulation 7
Regional and International Issues 7
Labor Trends 7
General Economic Analysis 7
Interest rates 7
GDP 7
International and Domestic Trade Policy 7
Monetary Policy 7
Fiscal Policy 7
BUSINESS VALUATION 8
Valuation Approaches 8
Asset Approach 8
Income Approach 8
Market Approaches 8
Selected Method - Income Approach 8
Prospective Analysis 8
Discount rate 9
Valuation calculation 10
DISCOUNTS AND PREMIUMS 11
Discount for Lack of Control 11
Discount for Lack of Marketability 11
FINAL CALCULATION OF VALUE 12
SOURCES 13
INTRODUCTION
Description of the Assignment
Guidance: Assume the intended use is for the sale of a minority stake of the company you’re valuing. This should be stated in this section of the report.
Standard of Value
Guidance: Assume the premise of value is that the business is a “going concern” as opposed to liquidation or other premise. Assume the standard of value is fair market value, as opposed to fair value, investment value, liquidation value or some other standard. This should be stated in this section.
Tesla Inc.
Brief History/Overview
Tesla is an American Electric and Clean Energy based company founded in the year 2003. The