Assignment:
A1. Student will be asked to select a public company with multi-national operation. Students will access Yahoo! Financial or Compustat for income statements and balance sheets of the selected company for the most recent five fiscal years. For each year, students will use Excel to compute the financial ratios for each year, including times interest earned (TIE), debt to assets ratio, dividend payout ratio and dividend yield.
Student will also be asked to compute annual and average annual growth rates in earnings, earning per share, dividends and dividends per share. At the conclusion of the modules, student will submit a written report that compares financial ratios and growth of the chosen company with industry peers from around the world. Student will be asked to assess whether or not the financial policies enhanced shareholder value.
For the purpose of assurance of learning, the Financial Policy Project will receive scores, based on:
a. Score 1: The ability to conduct a financial ratio analysis in a manner that bridges the gap between finance and accounting theory and actual company practices in the global environment.
b. Score 2: Demonstrate an understanding of how to interpret financial ratios; and
c. Score 3: The ability to utilize technology, such as the Computstat database and Excel to compile appropriate data that allows comparisons of the selected company's financial condition with peer companies.
B1. For Assurance of Learning Validation A1, student will select a Canadian public company. Student will access SEDAR (www.sedar.com) for income statements and balance sheets of the selected company. Students will also calculate three different financial ratios and interpret them in a short report.