Throughout this course, you will prepare a comprehensive financial analysis and proposal (excluding tables, figures, and addenda) that will demonstrate your understanding of key financial concepts, strategies, and practices. After selecting a company to profile, you will construct a comparative financial analysis of your selected company's financial position with that of a prime competitor, for example, Amazon and Netflix, Microsoft and Oracle, or Bank of America and JPMorgan Chase & Co. Following the nine-step assessment process detailed in Assessing a Company's Future Financial Health, your financial analysis and proposal will be composed of four separate component assignments in Topics 2, 4, 6, and 8.
For this assignment, apply the next three steps of the nine-step assessment process detailed in Assessing a Company's Future Financial Health(i.e., Step 5: External Financing Need, Step 6: Target Sources of Finance, and Step 7: Viability of 3-5 Year Plan) to compose further assessment of the company/competitor pairing analysis as below:
- Current financial plan. Interpret current equity valuations in order to recommend strategic solutions regarding future financial goals. Consider how stock splits and stock dividend allocations can impact the plan.
- Future external financing needs. To support growth, companies need capital, and external financial needs are vital any firm's future success. Describe external financing needs sufficient to support your ongoing analytical assumptions and pro forma financial statements for your chosen company and competitor.
- Access to target sources of external financing. You will need to consider the amount of financing, timing, length of time required, and deferability of financing options.
- Viability of a 3-5 Year Plan. Assess the consistency of the plan with the firm's goals, and the achievability of both the operating plan and the financing plan you are proposing.
- Companies chosen are Amazon and Ebay