The CFO of your company has asked for your support in preparing a report for the business?s board of directors. Many of the board members are new

FIN 320 Final Project Guidelines and Rubric

Competencies

In this project, you will demonstrate your mastery of the following competencies:

• Analyze financial and investment decisions that add value to the organization
• Analyze financing options to maximize investor value

Overview

This assignment is the last in the sequence that includes Final Project Milestones One and Two. In Milestone One, you introduced the business you chose. You examined its financial statements and financial health and reported its financial values. In Milestone Two, you made calculations based on the information found using Mergent Online about your company and compared the totals with those of one year ago. You then used those figures to decide whether short-term financing was needed to improve your company’s financial health.

In this final stage of your Final Project, you will use the information you’ve accumulated thus far and make decisions on whether any or all of the following are appropriate directions for your company. Review the assumptions about this company located in the Final Project Financial Assumptions document.

Note: All documents and resources that are needed to complete this assignment are linked in the What to Submit and Supporting Materials sections.

Scenario

The CFO of your company has asked for your support in preparing a report for the business’s board of directors. Many of the board members are new, and some of them have little background in finance. With this in mind, you will need to write a report that all board members can easily understand.

Directions

Specifically, you must address the following rubric criteria:

1. Financial Analysis: In prior assignments, you calculated some of the financial formulas using quarterly financial statements from your chosen business and the Final Project Financial Formulas worksheet. For the financial analysis, edit prior work based on feedback and include it in this final project.
   1. Financial Calculations: Accurately calculate financial formulas to figure out the business’s current financial health. You must calculate the following:
      1. Working capital
      2. Current ratio
      3. Debt ratio
      4. Earnings per share
      5. Price and earnings ratio
      6. Total asset turnover ratio
      7. Financial leverage
      8. Net profit margin
      9. Return on assets
      10. Return on equity
   2. Working Capital Management: Explain the impact of working capital management on a typical business’s operations. Provide examples to support your claims.
      1. Why is it important for a business in general to carefully manage its working capital?
   3. Financing: Explain the options available for a company in general to finance its operations and expansion.
   4. Short-Term Financing: Explain how potential short-term financing sources could help any business raise funds for improving its financial health.
   5. Bond Investment: Discuss the risks and benefits of any business investing in a corporate bond. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
   6. Capital Equipment: Discuss the risks and benefits of any business investing in capital equipment. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
   7. Building: Discuss the risks and benefits of any business investing in a building, including leasing substantive physical assets like buildings. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis.
2. Financial Evaluation: In this step, you will use the knowledge you’ve accumulated thus far and make decisions on whether any or all of the following are appropriate directions for your chosen company. Assume that the situations located in the Final Project Financial Assumptions document are true of your chosen company. For each of the options below, include the necessary ethical factors, appropriate calculations, and examples from previous milestones to support your analysis. Based on your company’s financial health, you should consider:
   1. Bond Investment: Determine if the bond investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
   2. Capital Equipment: Determine if the capital equipment investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
   3. Building: Determine if the building investment is a good financing option for your chosen business’s financial health. Use your financial analysis and other financial information to support your claims.
3. Future Financial Considerations: Describe your chosen business’s likely future financial performance. Base your description on the business’s current financial well-being and risk levels. This time, do not consider the assumptions in the Final Project Financial Assumptions document. Use your chosen company’s most current financial information to support your claims.

Milestones

Milestone One:
In Module Two, you will submit a short paper that introduces your chosen company and summarizes the results of the company’s latest balance statement, income statement, and cash flow statement. This milestone will be graded with the Final Project Milestone One Rubric.

Milestone Two:
In Module Five, you will submit a short paper that compares your chosen company’s latest status with the values of one year ago. You will use this information to decide whether short-term financing can help improve your company’s financial health. This milestone will be graded with the Final Project Milestone Two Rubric.

Final Submission:
In Module Seven, you will submit a short paper that describes whether your chosen company should make specific investments based on its financial health. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

What to Submit

To complete this project, you must submit the following:

Financial Analysis Report
Submit your completed Final Project Financial Analysis Report.

All sources should be cited according to APA style. This includes sources listed in your Final Project Financial Formulas workbook. Consult the Shapiro Library APA Style Guide for more information on citations.

Workbook: Final Project Financial Formulas
Use this Microsoft Excel workbook to complete your calculations for the project. You should have already completed the Ratios worksheets for your Final Project Milestone Two assignment. Check your instructor’s feedback on Final Project Milestone Two and incorporate any necessary changes.

Supporting Materials

The following resources support your work on the project:

Document: Final Project Financial Assumptions
This document contains descriptions of the three financial options you will evaluate.

Document: Final Project Business Options List
Use this document to select a business for this project.

Shapiro Library Resource: Mergent Market Atlas
Use this resource to help you complete this project.

Video: Mergent Market Atlas: Public Company Financials (4:46)
Watch this video from the Shapiro Library to learn more about how to access and use Mergent Market Atlas. This video shows information on the As Reported Currency page within the Company Financials tab. For the purposes of this course, however, the best way to see financial data is to click Standardized beneath the Company Financials tab. This will allow you to access the Standardized Annual Balance Sheet.

Shapiro Library FAQ: How do I cite a company profile from Mergent Market Atlas in APA Style?
Use this resource to help answer any questions you have about citing from Mergent Market Atlas.

Final Project Rubric

CriteriaExceeds ExpectationsMeets ExpectationsPartially Meets ExpectationsDoes Not Meet ExpectationsValueFinancial Analysis: Financial CalculationsN/ACalculates accurate financial formulas to figure out the business’s current financial health (100%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include accurately calculating financial formulas to figure out the business’s current financial health (55%)Does not attempt criterion (0%)6Financial Analysis: Working Capital ManagementExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Explains the impact of working capital management on a business’s operations, and provides an example to support the claims (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include explaining in more detail the impact of working capital management on a business’s operations or providing examples to support the claims (55%)Does not attempt criterion (0%)8Financial Analysis: FinancingExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Explains how a business can finance its operations and expansion (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include explaining in more detail how a business finances its operations and expansion (55%)Does not attempt criterion (0%)8Financial Analysis: Short-Term FinancingExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Explains how potential short-term financing sources could help a business raise funds for improving its financial health (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include explaining in more detail how potential short-term financing sources could help the business raise funds for improving its financial health, based on the business’s current financial information (55%)Does not attempt criterion (0%)8Financial Analysis: Bond InvestmentExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Discusses the risks and benefits of a business investing in a corporate bond, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include discussing in more detail the risks and benefits of the business investing in a corporate bond, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (55%)Does not attempt criterion (0%)8Financial Analysis: Capital EquipmentExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Discusses the risks and benefits of a business investing in capital equipment, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include discussing in more detail the risks and benefits of a business investing in capital equipment, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (55%)Does not attempt criterion (0%)8Financial Analysis: BuildingExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Discusses the risks and benefits of a business investing in a building, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include discussing in more detail the risks and benefits of a business investing in a building, including the necessary ethical considerations, appropriate calculations, and examples to support the analysis (55%)Does not attempt criterion (0%)8Financial Evaluation: Bond InvestmentExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Discusses the risks and benefits of a business investing in a corporate bond, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include determining if the bond investment is a good financing option for the business’s financial health, or using financial analysis and other financial information to support the claims (55%)Does not attempt criterion (0%)9Financial Evaluation: Capital EquipmentExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Discusses the risks and benefits of a business investing in capital equipment, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include discussing in more detail the risks and benefits of a business investing in capital equipment, including the necessary ethical factors, appropriate calculations, and examples to support the analysis (55%)Does not attempt criterion (0%)9Financial Evaluation: BuildingExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Determines if the building investment is a good financing option for the chosen business’s financial health, using financial analysis and other financial information to support claims (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include determining if the building investment is a good financing option for the chosen business’s financial health, or using financial analysis and other financial information to support claims (55%)Does not attempt criterion (0%)9Future Financial ConsiderationsExceeds expectations in an exceptionally clear, insightful, sophisticated, or creative manner (100%)Describes the chosen business’s likely future financial performance based on its current financial well-being and risk levels, using financial information to support claims (85%)Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include describing in more detail the chosen business’s likely future financial performance based on its current financial well-being and risk levels, or using financial information to support claims (55%)Does not attempt criterion (0%)6Clear CommunicationExceeds expectations with an intentional use of language that promotes a thorough understanding (100%)Consistently and effectively communicates in an organized way to a specific audience (85%)Shows progress toward meeting expectations, but communication is inconsistent or ineffective in a way that negatively impacts understanding (55%)Shows no evidence of consistent, effective, or organized communication (0%)8Citations and AttributionsUses citations for ideas requiring attribution, with few or no minor errors (100%)Uses citations for ideas requiring attribution, with consistent minor errors (85%)Uses citations for ideas requiring attribution, with major errors (55%)Does not use citations for ideas requiring attribution (0%)5Total:100%