The effects of debt financing for a chosen company
Order Description
Applied Summary Paper
The Applied Summary Paper is a 4- to 6-page analysis report on a finance topic. Select an industry and/or a company (your employer, for example). Acquire that company’s annual report. Explore a finance topic using that company’s data compared to the industry it is in. Research outside references. Comment on methods employed by that company, methods employed within the industry by its competition and suggest other methods that are relevant. The report should be analytical in nature. Analytical reports describe and evaluate alternatives based on criteria or circumstances, and they recommend an action.
An example of a report would be to evaluate the effects of debt financing. The report would describe the types and level of debt financing of a company currently and historically, explore the reasons for and implications of each, compare debt financing of its competitors including industry averages, explore other alternatives possible for debt financing, evaluate the effect on the future viability of the company based on economic conditions including interest levels and any product or industry concerns due to its methods of debt financing, and conclude with a recommendation of actions the company might consider taking in reference to its debt financing. Notes to financial statements and income statement, balance sheet, and cash flow information should be incorporated as relevant to the discussion on debt.
Other suggested topics include:
• €The effects of equity financing ?
• €The effects of changing capital structure for a company ?
• €The analysis of a financial ratio ?
• €An analysis of the effectiveness of working capital management ?
• €An analysis of short-term financing methods employed ?
• €An evaluation of risk management for the company ?
• €An analysis of a financial decision made or about to be made by the company ?
• €An analysis of the financial effects of a past or proposed merger ?
• €Others arranged by agreement with the instructor ?Outline of the Applied Summary Paper ?A Marking Guide can be found on the course site for this paper. ?
1. Title Page (5 Points) ?Include the company being researched, the class and instructor, the name of the person submitting the report and the date in normal title page format. ?
2. Executive Summary (15 Points)?Provide an executive summary of the report. The purpose of the executive summary is to recap the essential elements of the entire report for an executive. Executive summaries are titled, single spaced and occupy their own page but are 1 page or less. The three parts of the executive summary should be designated using side headings. The three parts are the purpose of the report, significant findings, and a conclusion or recommendation. ?
3. Introduction (10 Points)?Repeat the title of the report. Briefly, “set the stage” for your report. Double space the introduction and the remainder of the report proper. The introduction should be a maximum of one page and could be less. Talk about the company history and products, the industry, and what you are about to do in general to form a beginning reference point. Remember to be brief ?
4. Body of the Report (40 Points)?Separate your discussion into sections with headings. Include at least 5 financial strengths and 5 financial weaknesses of the company. ?
5. Recommendation (20 Points)?Summarize your findings in support of your conclusion. Recommendations are short, do not contain new information, and are almost a foregone conclusion based on the body of the report. ?
6. Works Cited (10 Points)?Include a page of sources with items unnumbered and in alphabetical order by author’s last name, following APA format. Use parenthetical citations to reference source information in the body of the report. ?
7. Appendix?Include the annual report and any other relevant data not included in the report. Include your spreadsheet showing calculations for ratios and other relevant analytics.
