CAT Caterpillar Financial Company Analysis, assignment help

In need a company Analysis to be completed by FRIDAY. I’ve become ill, and have been in and out out of the hospital. I have attached expectations and rubric, as well as a sample A paper. 

Company: CAT – Caterpillar

Final Project: Financial Analysis Paper

The course project will require each student to complete a thorough financial analysis of an assigned publicly traded corporation. The project deliverables will be:

  •   Structured Word Document (not a PDF) in proper APA Format. Refer to the following links for APA guidance.

    o https://owl.english.purdue.edu/owl/resource/560/01/

    o https://owl.english.purdue.edu/owl/resource/560/18/

  •   Supporting Excel spreadsheets including formulas and calculations.

    Prior to Week 1 students will be given a publicly-traded corporation to research. Your assigned corporation will be posted in Blackboard in “My Grades and My Assigned Corporation”. Project requirements must include the following analysis:

  1. Description of the corporation: its products, markets, subsidiaries (if any), risks, public highlights, and financial highlights. (Week 2 Discussion Board).

  2. Overall trend assessment of the company’s balance sheet and income statement for the last three to five years. (Week 2 Discussion Board). Including graphs and/or charts receives preferred grading.

  3. Provide ratios fully calculated using your assigned corporations actual balance sheet and income statement data within formulas in excel. Also provide an analysis discussion of the same ratio trends (3 page “text” minimum) included in a word document. Ratio categories must include

    1. Short Term Solvency aka Liquidity

    2. Long Term Solvency aka Financial Leverage

    3. Asset Management aka Turnover

    4. Profitability

    5. Market Value

    Select and analyze at least three ratios from each category, 15 ratios minimum. A three-year ratio analysis is the minimum expectation. A five-year analysis receives preferred grading.

    Trend analysis of the company’s stock price, PE ratio, and EPS trends for the last three to five years with comparisons of each to competitors.

    Evaluation of the firm’s posted Beta (do not calculate Beta, it will be posted in financial websites such as money.msn.com online) in relation to competitors.

    Assessment of the firm’s capital structure (D/E Ratio) including any significant changes in the firm’s capital structure over the last three to five years. (Continued on next page)

Excel calculation of the WACC (weighted average cost of capital) including independent calculations of each of the following variables. Cost of Equity using both the SML (aka CAPM) Approach and the Dividend Growth Model Approach with a discussion explaining which approach you prefer for WACC and why (Section 14.2 of the text provides advantages and disadvantages for each approach). All of these variables are defined in Chapter 14. There is an Eastman Chemical WACC calculation example on pages 468 – 471 in the text.

WACC = (E/V)*Re + (P/V)*Rp + (D/V)*Rd * (1-Tc)

  1. Assessment of the firm’s statement of cash flows and determination of the firm’s free cash flow over the last three to five years. (Week 6 Discussion Board).

  2. Closing summary of the firm’s financial health in relation to the overall economy and within its industry. In your own words explain why or why not someone should invest in this firm. Show current analyst recommendations as a guide with a discussion of supporting facts and financial data.

A Draft Financial Analysis Report worth 30 Points will be submitted in Week 4. For full credit, the draft must indicate significant progress on the following items:

  •   Draft of Company Description from Discussion Board 1, updated if necessary.

  •   Draft of Financial Statement Trend Assessment from Discussion Board 1, updated if

    necessary.

  •   Draft Ratio Analysis with at least five of the ratios calculated (not just input) using

    formulas in Excel.

  •   Draft of the written ratio trend analysis (related to c above) provided in Word.

  •   Draft of the Stock Price, PE, and EPS trend analysis compared to competitors, with

    current beta comparison to competitors. Excel calculations are not required for this section.

    These Week 4 drafts are not a substitute for a COMPLETE paper in Week 7. A complete paper incorporating the above key components is still required to be submitted in week 7.

8

Corporate tax rate

% of financing that is equity

Cost of debt

Cost of equity

% of financing preferred stock

Cost of Preferred Stock

% of financing that is debt

Project deliverable details:

  1. Financial analysis Word file is to be a minimum 10 pages in length as

    outlined in the rubric below. The cover page and supporting reference appendices are not included in the 10 page minimum. Page minimums are written text not including charts, graphs, tables, or other images.

  2. APA Paper Format: including but not limited to proper APA headers, proper APA page numbers, and APA references with hanging indent.

  3. Supporting financial data will be prepared using Excel, including mathematical formulas within the cells. The Excel data must be clearly referenced as appendices in the related written discussion in the Word file.

  4. Additional materials such as graphs, charts, maps, etc. add clarity and will earn preferred grading. Small items are to be nested within the discussion. Large reference materials will be included as properly referenced APA appendices. Appendix A contains the income statement, balance sheet, and statement of cash flows. Appendix B contains the ratio analysis. Appendix C has the full WACC calculation with Cost of Equity using both the CAPM and the Dividend Growth Model. Additional appendices are OK.

  5. Reference page includes all references cited within the paper using APA format including hanging indent for references. Safe Assign will be used to ensure proper citing of academic references.

9

A Complete Financial Analysis Report worth 100 Points will be submitted in Week 7.

Final Project Grading Criteria Rubric

Maximum Points

Description of firm’s products, markets, subsidiaries (if any), risks, public and financial highlights. (1-page written text minimum)

5

Financial Statement Trend Assessment (1-page written text minimum) Referencing Appendix A: Income Statement and Balance Sheet

10

Ratio calculations in Excel with supporting Word trend analysis (3- page written text minimum) including at least three ratios from each of the following categories: (a) Short Term Solvency aka Liquidity, (b) Long Term Solvency aka Financial Leverage, (c) Asset Mgmt aka Turnover, (d) Profitability and (e) Market Value. A three-year ratio analysis is the minimum expectation. A five-year analysis receives preferred grading. Referencing Appendix B: Ratio Analysis Results

30

Stock price, PE, and EPS trend analysis with each compared to their competitors and the market (2-page written text min). A three-year trend analysis minimum, five-year analysis receives preferred grading. Also a current analysis of beta. Use posted Beta, do not calculate Beta.

10

Word Capital structure analysis (D/E ratio from Appendix B) and Word WACC analysis contrasting Cost of Equity using the CAPM model vs. the Dividend Growth Model with a discussion explaining which model was used for WACC and why. (1 page written text min). WACC calculations in Excel with (a) Cost of Equity calculated in both Dividend Growth Model and CAPM (aka SML), (b) Cost of Debt calculated from Bond Table weighted average, and (c) Preferred Stock (if any). Referencing Appendix C: WACC calculation including weighted average Bond Table for Debt Calculations, Equity from both Dividend Growth Model and CAPM Model, and Preferred Stock.

15

Statement of Cash Flows Analysis & Free Cash Flow Analysis (1-page written text min). Significance of Positive/Negative values. Reference Appendix A Statement of Cash Flows. Excel Free Cash Flow Calcs.

10

Conclusion: Critique of the firm – highlighting items in your paper. Critique or support of Analyst Recommendations with backup (1- page written text minimum)

5

Excel documentation concise, clear, supports narrative and calculation requirements

5

Perfect spelling, punctuation, grammar; APA format; Appendices Included & Clear
Appendix A: Income Statement, Balance Sheet, Cash Flow Statement Appendix B: Mathematical Ratio Analysis Results

Appendix C: Full WACC calculation including weighted average Bond Table for Debt Calculations, Equity from Dividend Growth Model, Equity from CAPM/SML Model, and Preferred Stock (if any) calculated.

10

Total

100

Additional Preferred-Grading Points per Dr. Martin

?

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