Assignment:
Create a 2- to 3-page paper.
You must use APA format
Investing in products and services should produce returns so that stockholders, stakeholders, and others are interested in the organization.
You will learn about a new product or service.
Chose a publicly-traded company and analyzed its financial statements. Use that company to do the following:
1. Identify a new product or service-either recently rolled out or about to be rolled out-in the company you chose
2. Analyze the quality of the company's existing products or services. Try answering the following questions about returns on the new product or service of your choice.
-What is the return on equity earned by the company? Based upon this return, is the company picking good products or services?
-What is the return on capital earned by the company? Based upon this return, is the company picking good products or services?
3. Discuss how the company financed the initiative and why it was perceived to be advantageous. To answer question, you might want to look at the following:
o How sensitive has this company's value been to changes in macro-economic variables such as interest rates, currency movements, inflation, and the economy?
o How sensitive has this company's operating income been to changes in the same variables?
o How sensitive is the sector's value and operating income to the same variables?