As students of finance and potential investors, you can estimate the financial health and profitability of a company using financial ratios and other industry tools. The tools and skills practiced in this course can be used to help you determine whether or not to invest money in a company. Research into the financial health of the company can help make the decision.
In the final project you compute corporate performance ratios and compare them to industry averages. You also study portions of the company’s annual report to analyze the company’s operating and cash cycles, long-term debt, and cost of capital. Finally, you summarize your conclusions in an analysis from an investor perspective. Please summarize and explain the project listed in the syllabus here.
You should budget your time wisely and work on your project throughout the course. As outlined below, some assignments in the course are designed to assist you in creating your final project. If you complete your course activities and use the feedback provided by the instructor, you will be on the right track to successfully complete your project.
 Due in Week One : Choose a publicly traded company that holds inventory for your final project. Be sure to locate the company’s annual report for 2 consecutive years and other financial data on the Internet.
The following are some of the companies for which there is a wealth of publicly available financial information. These companies have been selected from the retail, automotive, computer, telecommunications, airline, and pharmaceutical industries. Note that your choice is not limited to these:
Target
General Motors
Wal-Mart
Harley-Davidson
Dell
AT&T
IBM
Sprint
Northwest American Airlines
Johnson Pharmaceuticals Merck
Ford
U.S. Airways
Apple
Verizon
Lear
Boeing
 Suggested in Week Two : Compute the ratios required by the final project for the company you chose. Begin to draft your recommendations on whether as an investor you should buy this company's stock and why.
 Suggested in Week Three : Compare your selected company’s financial ratios to industry averages. Review industry averages by accessing University Library.
To access industry averages for the first seven ratios, complete the following steps:
1. Click Choose Databases by Subject from the Library Resources menu.
2. Click on Accounting and Finance .
3. Click on Dun & Bradstreet Key Business Ratios under Company Directories and
Financials heading.
FIN 200

To access industry averages for the price-to-earnings ratio (P/E ratio), complete the following steps:
1. Navigate to The Business Week Investment Outlook Scoreboard at http://bwnt.businessweek.com/investment_outlook/2005/index.asp
.
2. Compare the GM P/E ratio to the Automobiles & Components industry average .
 Suggested in Week Four : List the long-term debt held by the corporation you have selected, as well as maturity dates and yield to maturity.
 Suggested in Week Five : List the types of stock issued by the company chosen for your final project, the stock ’s current selling price, and the 52-week average selling price.
 Suggested in Week Six : Compute the weighted average cost of capital (WACC) for both years. Discuss your findings and how the weighted average cost of capital can impact the company's financial standing.
 Suggested in Week Eight : Refer to your answers for Discussion Questions 1 & 2 to analyze the company's working capital management based on their inventory period, accounts receivable period, accounts payable period, cash conversion cycle, and operating cycle.
Explain why the company’s operating and cash cycles are currently optimized. If they are not optimized, explain why you believe they are not.
 Due in Week Nine : Compile the information you have gathered throughout the course into a final paper. Submit your final project.
FIN 200