For the purpose of this exercise, students will choose a company for which they will conduct an environmental scan and a financial analysis. The analysis of the company should culminate with students recommending that the company is â€œexcellent,â€ â€œhealthy,â€ or â€œill.â€ Students will be evaluated based on correctness of the calculations, the insight of the analysis, and the quality of the discussion relating to the requirements.
Before performing the financial analysis, students will prepare an environmental scan, which will discuss the various forces with which an organization must contend to assure that its business model has a chance for success. The specific calculations should include:
â€¢ DuPont Identity
â€¢ Current Ratio Empowering you to innovate the world of business!
â€¢ Quick Ratio
â€¢ Inventory Holding Period
â€¢ Average Collection Period
â€¢ Debt Ratio
â€¢ Dividend Yield
â€¢ Required Rate of Return based on the Capital Asset Pricing Model
â€¢ Free Cash Flow
â€¢ Market Value Added
â€¢ Economic Value Added
Additionally, students will be expected to prepare an executive summary of the process of capital budgeting, using an example that is specific to the company that is being analyzed. An executive summary of cost-volumeprofit analysis is also required, using an example that is specific to the company that is being analyzed. The written paper is to be typed doubleâ€“spaced, 1â€™ margins, Times New Roman and 12-point font, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings.
Name of the company is Amazon.