Calculate return on equity


An analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.

The completed report should include:

An introduction to the company, including background information.A financial statement review.
Pro Forma financial statements 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.A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
a.Liquidity
b.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. Evaluate the soundness of the company’s financial policies 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.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Calculate return on equity
Reference No:- TGS0513966

Expected delivery within 24 Hours