Project Scope: Financial Analysis Project
Prepare a comprehensive financial analysis of a public company . The analysis is based on the latest Securities and exchange Commission( the ''SEC'') annual report on form 10-k.
Remeber only one company is required . AS part of the project , you will need to locate the annual report on SEC form 10 k at the company's web site or at SEC.gov
1- Summary
The ability to present a concise review of the issues is the essential in business . Consequently, This section is the key component of your project.
Determine the key issues from each of the sections below
Prepare a summary of the company and business environment. Information for this section can be found in item 1 of the form 10k. This is an overview and half page to one page normally is sufficient. Bullet point format is encouraged
2- Financial statement analysis
Analyze components of the primary financial statements( see below), include supporting note disclosures , management's discussion & analysis ( ''the MD&A'') and other supporting form 10-K disclossures.
Primary financial statements for the project include: the income statemnt, balance sheet, statement of cash flows.
Analysis of the income statement and statement of the cash flows should focus on the current year compared to the prior year.
Balance sheet analysis should focus on the current year end only.
Analysis should include:
. Financial statistics and measures covered class sessions that considered applicable. As a genereal guideline, 12 or more financial statistics/measures should be considered and analyzed.
Example analysis of the financial statistics and meassures could include the following:
. Comparision of cash flow from operating activity compared to the prior year
. Comparison of the significant changes in the income statement components compared to the prior year
. Identification of the significant components of working capital at the year end
. A comparison of gross profit margins compared to the prior year
Observations , if applicable, concerning the relationships between the primary financial statements . For example how did earnings translate to cash flow for operating activity
3- Current developments
Prepare brief summary of any key developments in latest for 10Q and other avalaibale information, including any recent form 8k filings
. The goal is to determine if there have been any significant changes compared to your analysis of the form 10k
4- The S&P 500 Index price is 1492.28 and its annualized dividend yield is 2.30%. LIBOR is .2%. How many futures contracts will you need to hedge a $240 million portfolio with a beta of 1.16 for one year? (Show your Work)