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Accounting Question

Overview

Accountants must know how to set up multiple years’ worth of financial statements for review. They must also know how to do different types of analysis work like vertical, horizontal, and ratio analyses.

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Directions

There are two parts for this milestone: the relevant tabs of the

Project Workbook Template

and the Financial Analysis section in the

Business Valuation Template

.

Project Workbook Template: Balance Sheet and Income Statement

For the Project Workbook Template part of this milestone, you will complete the financial analysis for the company you selected by reviewing five years of historical financial statements beginning with the most recent year filed. You will focus on the balance sheets and income statements published by the company in their annual SEC 10-K filings. Remember, assets = total liabilities + owner’s equity.

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The common-size statements and Milestone Ratio tab will auto-calculate. Use these sections to check your work for the Milestone Balance Sheet and Milestone Income Statement tabs. Enter the year on the balance sheet first to auto-populate the rest of the years correctly. Insert the name of the company and the dates of the period covered on every tab since these do not auto-populate. Insert how values are being reported in the heading, whether it be in thousands or millions.

The template will provide a check digit for the Milestone Balance Sheet tab to help you make sure your balance sheet is in balance. Use the check digits to check your work prior to submission.

Complete this portion of the milestone first before publishing your findings in the Business Valuation Template.

Note: You may choose to complete an assignment using a desktop program instead of SNHU’s virtual desktop (VDI); however, technical support will not be provided by SNHU if you select this option.

Business Valuation Template: Financial Analysis

For this milestone, you will complete only the Financial Analysis section of the template.

Specifically, you must address the following rubric criteria:

Project Workbook Template

  1. Prepare the company’s balance sheet accurately and completely on the Milestone Balance Sheet tab in the workbook. Include the following details in your response:Ensure the total assets, total liabilities, and owner’s equity agree with the company’s published financial statements in the 10-K filings.Ensure the balance sheet is in balance for all five years.Ensure all 10-K financial statements are reporting in the same dollar amount (i.e., thousands or millions). Make adjustments in the workbook accordingly.
  2. Prepare the company’s income statement accurately and completely on the Milestone Income Statement tab in the workbook. Include the following details in your response:Subtotal the income statement in your workbook only to the published income statement line items for net income before tax for all five years.Include the gross profit margin even if the company does not report a gross profit margin on the published income statement.Identify the direct cost of goods sold.

The following sections are found in the Business Valuation Template:

Balance Sheet Analysis

  1. Explain the findings regarding the company’s asset accounts for the previous five years. Include the following details in your response:Describe in detail the material changes in the asset accounts, including changes in cash, AR, inventory, property, plant and equipment, and goodwill.Explain what these changes might be related to.
  2. Explain the findings regarding the company’s liability accounts for the previous five years. Include the following details in your response:Describe in detail the material changes in both current and long-term liabilities.Explain what these changes might be related to.
  3. Explain the findings regarding the company’s equity accounts for the previous five years. Include the following details in your response:Describe in detail the changes to equity accounts, including common stock, treasury stock, or additional paid in capital (i.e., whether the company raised funds or retired stock).Explain how the changes compare to the net income or other sections of the balance sheet.Identify whether the company is paying out dividends.Explain in detail how the company’s dividend payouts have changed over the past five years.Describe in detail the changes in “total equity” (representing the current “book value” of the company).
  4. Explain what the company’s current and prior year liquidity and debt-to-equity ratios say about the company’s financial health. Consider the following questions to guide your response:What is an appropriate level of debt?How does this year’s performance compare to the previous year?

Income Statement and Cash Flow Analysis

  1. Explain the profitability ratios that are included in the company’s financial statements. Include the following detail in your response:Explain any trends and relate any changes back to the balance sheet and income statement accounts used in the ratio calculation.
  2. Explain the profitability of the company for the prior and current years. Consider the following questions to guide your response:What does a vertical analysis of the company’s gross revenue show you? What is the percentage (%) of change year over year for these past five years?How are the company’s COGS and gross profit margin being managed?How are the company’s sales, general, and administrative expenses being managed as a percentage of sales? What does this tell you about the company’s current business cycle? Remember that it is normal for this percentage to rise when sales are dropping and fall when sales are rising. If this is not happening, what might be the reason?
  3. Describe what free cash flow is and how it is calculated.
  4. Explain the free cash flow history for the company.
  5. Explain the data reported in the cash flow statement for all five years reported. Include the following details in your response:Identify the amount of cash flow reported from operations.Identify the amount of cash flow reported from investments.Identify the amount of cash flow reported from financing.Explain the correlation between each of these categories of cash flow for the past five years.

Normalization Adjustments Analysis

  1. Define the term normalization adjustment.
  2. Identify three examples of balance sheet normalization adjustments that might appear.
  3. Identify three examples of income statement normalization adjustments that might appear.

Summary

  1. Summarize your findings for the valuation team. Include the following details in your response:Explain what you learned as you researched the company.Identify the key points the valuation team needs to be aware of.
  2. Create at least one effective visualization that supports key points. Include the following detail in your response:Provide appropriate labels for the visualization(s).

If you need writing support, access the Academic Support module of your course.

What to Submit

Project Workbook Template

Submit the Project Workbook Template with the following tabs completed: Milestone Balance Sheet, Milestone Income Statement, Milestone Ratios.

Note: You will be using this same file for this milestone and your project.

Business Valuation TemplateSubmit the Business Valuation Template with the Milestone Two: Financial Analysis section completed. The Financial Analysis section should be an additional 4- to 6-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins in addition to the current page count. Sources should be cited according to APA style.

Note: You will be using this same file throughout all milestones and your project.

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Other Long-Term Liabilities
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Inventory Turns
Days in Inventory
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Days in Payables
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Total Long-Term Liabilities
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answers on this tab. Please highlight your corrected answers in green or note with an asterisk.
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*If you received a perfect score on the Milestone Two, please place an “X” next to Miestone Two Perfect Score. Then you
do not have to complete this tab because all entries on the Milestone Corrected Balance Sheet tab are correct.
If you need to correct answers from Milestone Two, place an “X” next to Corrected Milestone Two. Then enter in your
corrected answers on this tab. Please highlight your corrected answers in green or note with an asterisk.
Milestone Two Perfect Score:
Correct Milestone Two:
[Insert company name]
Income Statement
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[Insert how data is recorded. (i.e. thousands or millions)]
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Current Ratio
Quick Ratio
Working Capital
Activity Ratios
Receivable Turns
Days in Receivables
Revenues/Working Capital
Revenues/Fixed Assets
Revenues/Total Assets
Inventory Turns
Days in Inventory
Payables Turns
Days in Payables
Coverage/Leverage Ratios
Fixed Assets/Equity
Profitability Ratios
Return on Equity
Return on Total Assets
Net Profit on Revenues
*If you received a perfect score on the Milestone Two, please place an “X” next to Miestone Two Perfect
Score. Then you do not have to complete this tab because all entries on the Milestone Corrected Balance
Sheet tab are correct.
If you need to correct answers from Milestone Two, place an “X” next to Corrected Milestone Two. Then
enter in your corrected answers on this tab. Please highlight your corrected answers in green or note with
an asterisk.
Milestone Two Perfect Score:
Correct Milestone Two:
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Estimated Annual Gross Profit Margin
[insert value]
[insert value]
Sales, General, and Administrative Expenses (SG&A)
Estimated Annual SG&A (% of Sales)
#VALUE!
[insert value]
#VALUE!
[insert value]
Other Income (Expense) *If expense is reported, enter as a negative number.
Interest Income / (Expense)
Other Income (Expense)
Net Income (Loss)
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
t company name]
Income Statements
tes of period covered]
orded. (i.e. thousands or millions)]
Financial Statements
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#VALUE!
[insert value]
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#VALUE!
[insert value]
#VALUE!
#VALUE!
[insert value]
Terminal
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[insert value]
#VALUE!
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#VALUE!
#VALUE!
[insert value]
[insert value]
[insert value]
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[insert value]
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[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
#VALUE!
#VALUE!
#VALUE!
#VALUE!
[Insert company name]
Development of Discount Rate and Capitalization Rate Table
Risk-free long term U.S. Government bond rate
Equity risk premium
Industry premium estimate
Cost of equity (Discount Rate)
Less: Long-term sustainable growth rate
Capitalization Rate
NOTES
(A) Yield on the twenty-year U.S. Treasury bond as of December 31, 20XX, per the U.S. Treasury
(B) Long-horizon expected return of large stocks over risk free securities, U.S. Equity Risk Premium (6.0%)
(C) SIC code XX, 1.5%
(D) Appraiser’s judgement concerning company-specific risk
(E) Estimated long-term growth rate based on inflation, Federal Reserve Bank of Philadelphia
me]
italization Rate Table
[Insert most current year]
Rate
Note
2.60%
6.00%
1.50%
3.00%
13.10%
-2.50%
10.60%
A
B
C
D
Sum of A – D above
E
[Insert company name]
Discounted Cash Flow Method
[Insert dates of period covered]
Projected for Ye
#VALUE!
#VALUE!
Forecasted Net Income
Plus
Depreciation
*Less
Cash Used for Investments
Cash Used for Financing
Net Cash Flow
Present Value of Cash Flows
#VALUE!
#VALUE!
[insert value]
[insert value]
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
#VALUE!
#VALUE!
13.10%
Net Present Value of Future Cash Flows
Net Present Value of Terminal Cash Flow
#VALUE!
#VALUE!
10.60%
Total Indication of Value
#VALUE!
1.00
* NOTE: Cash USED must be entered as negative
numbers.
2.00
company name]
d Cash Flow Method
es of period covered]
Projected for Years Ending December 31,
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
Terminal
#VALUE!
[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
3.00
4.00
5.00
[Insert company name]
Final Computation of Value
As of [Enter date]
Indicated Value of Equity
Weight
Weighted Value
Indicated Value with Voting Rights
*Less: DLOC (Discount for Lack of Control)
15%
Marketable, Minority Value
**Less: DLOM (Discount for Lack of Marketability)
25%
Nonmarketable, Minority Value
Value of a 1% Interest
*Let this default to the rate applied here for the DLOC. It is
possible to override this rate with your own. However, an
explanation must be provided why it was changed.
**Let this default to the rate applied here for DLOM. It is
possible to override this rate with your own. However, an
explantation must be provided on why it was changed.
ame]
Value
e]
Income Approach:
Discounted Cash Flow Method
#VALUE!
100.00%
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
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#VALUE!
ACC 345 Milestone One
Basel Sukkar
Southern New Hampshire University
ACC 345: Financial Statement Analysis/Business Valuation
Jamie Zimmerman
Jan 28th, 2024
Milestone One: Introduction …………………………………………………………………………………………….. 3
Links ………………………………………………………………………………………………………………………….. 3
History and Overview ………………………………………………………………………………………………….. 3
Summary ……………………………………………………………………………………………………………………. 7
Milestone One References ……………………………………………………………………………………………. 9
Milestone Two: Financial Analysis …………………………………………………………………………………… 9
Balance Sheet Analysis ………………………………………………………………………………………………… 9
Income Statement and Cash Flow Analysis …………………………………………………………………… 10
Normalization Adjustments Analysis …………………………………………………………………………… 12
Summary ………………………………………………………………………………………………………………….. 12
Milestone Two References ………………………………………………………………………………………….. 12
Milestone Three: Economic Outlook ……………………………………………………………………………….. 13
Microeconomic Industry Analysis ……………………………………………………………………………….. 13
General Macroeconomic Analysis ……………………………………………………………………………….. 14
Summary ………………………………………………………………………………………………………………….. 15
Milestone Three References ………………………………………………………………………………………… 15
Project …………………………………………………………………………………………………………………………. 16
Assumptions and Rationale …………………………………………………………………………………………. 16
Analysis ……………………………………………………………………………………………………………………. 16
Project References ……………………………………………………………………………………………………… 16
Valuation Team Report ………………………………………………………………………………………………. 16
Milestone One: Introduction
Links
1. Provide the most recent SEC Form 10-K Filing link for the company.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017023001409/tsla20221231.htm
2. Provide the most recent SEC Proxy Filing link for the company.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000119312523094075/d4513
42ddef14a.htm
History and Overview
1. Provide a brief company history overview based on external research of the company.
Consider the following questions to guide your response:
A. How long has the company been in business?
B. Who was the original founder of the company?
C. What significant changes to company leadership have occurred?
D. How has the company changed since its beginning? Consider expansion of
locations or products/services, etc.
The company chosen is Tesla inc, and it has been in business for 20 years. The
founders of Tesla are Elon Musk, Martin Eberhard, JB Straubel, Marc Trapenning, Ian
Wright who originally founded the company. One of the major changes that Tesla has
experienced during its years in business was and still is the impact that the current CEO
Elon Musk has had on the company’s progress and success,through his focus on electrical
vehicles and strong social media influence, Elon Musk was able to lift the company to it’s
highest potential yet. e company has been mainly producing Electrical vehicles varying
from sedans, SUVs, and trucks which shaped the direction of the company as a mainly
EV car manufacturer.
2. Identify all of the company’s major locations for their facilities and/or other properties.
Tesla has many stores locations and manufacturing facilities, and the most employed
facility is a Tesla factory in Fremont, California where the electrical vehicles are produced, then
the Gigafactory in Nevada where the batteries are produced. In addition, there are four more
giga factories to accommodate global production.
3. Identify all of the customers recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business.
Based on the 10-K filing, Tesla’s customers consist of people seeking an
electrical vehicle, also certain entities and organizations are in partnerships with Tesla
such as government entities, freight services given the new Tesla freight truck.
4. List all of the names of the executive management team of the company.
Find this information in the annual Form 10-K filing, in Part 3, Item 10:
Directors, Executive Officers and Corporate Governance or in the Annual Proxy filing,
under “Executive Officers,” or “Officers Compensation.” You may copy and paste a
chart into this section from the annual Form 10-K filing. Be sure to add your own
explanation of the information in the chart along with an attribution and a citation in the
References section at the bottom of this template.
Name
Position
Elon Musk
Technoking of Tesla and Chief
Executive Officer
Zachary Kirkhorn
Master of Coin and Chief Financial
Officer
Andrew Baglino
Senior Vice President, Powertrain
and Energy Engineering
Tesla executive team consists of the CEO Elon Musk, the CFO Zachary Kirkhorn, and the Sr.
Vice President Andrew Baglino.
5. Identify all of the competition recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business.
Tesla’s competition is huge as it’s part of the automotive industry, shifting
towards electrical vehicle production, which will only increase in the upcoming years.
Another side of Tesla’s competition comes from the energy storage and solar energy
systems sector.
6. Identify all of the major shareholders of the company.
Find this information in the Annual Proxy filing, under “Beneficial Ownership.”
Tesla’s shareholders consist of a majority shareholding by Tesla’s CEO Elon
Musk, with a shareholding of 20.6% beneficially owned and the same goes to the
company’s CFO Zachary Kirkhorn. Other shareholders such as The Vanguard Group
have a 6.9% shareholding, Blackrock, inc. With a 5.6% shareholding.
7. Describe business risks recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1A: Risk Factors.
Item 1A in the annual Form 10-K will be lengthy. Do your best to summarize the risks
the company has identified.
Business risks facing Tesla are mostly related to production, supply, competition, and
constant change in regulations. 
8. Explain how the company is committed to Environmental, Social and Governance (ESG)
efforts and sustainability.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business or in
Part 2, Item 7: Management’s Discussion and Analysis of Financial Condition and
Results of Operations. If your company does not provide this information in its SEC
filings, you will need to do external research to determine your company’s commitment
to ESG efforts and sustainability. Be sure to add your own explanation of the information
you researched. Include appropriate attributions in your explanation and a citation in the
References section at the bottom of this template.
Tesla’s commitment to environmental, Social, and Governance (ESG) is demonstrated
through their products which promote sustainability and focus on renewal energy, also their
electrical vehicles have been proven to reduce Carbon emmisions. In addition to their solar
energy systems.
9. Describe the company’s Leadership in Energy and Environmental Design (LEED) status.
Consider the following questions to guide your response:
A. Is the company currently LEED certified?
B. If the company is not currently LEED certificated, is it working towards
becoming LEED certified?
Review the Form 10-K filing to see if your company is LEED certified or if it discusses
its certifications. If your company does not provide this information in its SEC Filings,
you will need to do external research to determine your company’s LEED status. Be sure
to add your own explanation of the information you researched. Include appropriate
attributions in your explanation and a citation in the References section at the bottom of
this template.
Tesla has taken substantial initiatives to gain its recognition for energy and
environmental design, known as LEED status. While the specific LEED certifications for
Tesla’s facilities may vary, the company prioritizes sustainability across all its operations.
One of Tesla’s illustrations of LEED is in Tesla’s Gigafactories, where sustainable
designs and the integration of renewable energy sources are prioritized, and that is
apparent as the Tesla Gigafactory located in Nevada has been awarded the LEED Gold
certification, presenting the company’s dedication to environmentally conscious practices.
Summary
1. Summarize your findings for the valuation team. Include the following details in your
response:
A. Explain what you learned as you researched the company.
B. Identify the key points the valuation team needs to be aware of.
Tesla, which has been around for two decades, has gone through some big changes,
especially because of CEO Elon Musk’s focus on electric vehicles (EVs) and his strong presence
on social media, which has boosted the company. They’re all about EVs, and they’ve got various
stores and factories. The one in Fremont, California, is where they make most of EVs, and the
Gigafactory in Nevada handles the batteries. They’re facing competition in both EVs and energy
storage and solar systems sectors.
Tesla’s customers include regular consumers looking for EVs and some partnerships with
government agencies and freight services. At the top, you’ve got Elon Musk, Zachary Kirkhorn
as the CFO, and Andrew Baglino as Sr. Vice President. Shareholders, mainly Musk and
Kirkhorn, also include big names like The Vanguard Group and BlackRock.
Tesla has got some risks like production issues, supply chain stuff, tough competition,
and changes in regulations. They’re all about being environmentally friendly and socially
responsible, with a focus on renewable energy and cutting down on carbon emissions. They’re
even going for LEED status for their facilities, with the Gigafactory in Nevada getting the LEED
Gold certification, showing they’re serious about being environmentally conscious.
2. Create at least one effective visualization that supports key points. Include the following
detail in your response:
A. Appropriate labels for the visualization(s).
Create an effective visualization(s) based on your research to support your summary
report. Examples of ideas for your visualization(s) include creating a timeline of the
company history, creating a map of the company’s locations, creating a chart of major
shareholders showing ownership and broken down by percentages, etc.
Milestone One References
Team, T.I. (no date) Who are tesla’s (TSLA) main competitors?, Investopedia. Available at:
https://www.investopedia.com/ask/answers/120314/who-are-teslas-tsla-main-competitors.asp#tocthe-bottom-line (Accessed: 14 January 2024).
Cadie Thompson, K.L. (no date) Tesla history’s most important moments, from its founders’ launch to
bringing EVS mainstream, Business Insider. Available at: https://www.businessinsider.com/teslahistory-founders#2009-5 (Accessed: 14 January 2024).
Milestone Two: Financial Analysis
Balance Sheet Analysis
1. Explain the findings regarding the company’s asset accounts for the previous five years.
Include the following details in your response:
A. Describe in detail the material changes in the asset accounts, including changes in
cash, AR, inventory, property, plant and equipment, and goodwill.
B. Explain what these changes might be related to.
[Insert text.]
2. Explain the findings regarding the company’s liability accounts for the previous five
years. Include the following details in your response:
A. Describe in detail the material changes in both current and long-term liabilities.
B. Explain what these changes might be related to.
[Insert text.]
3. Explain the findings regarding the company’s equity accounts for the previous five years.
Include the following details in your response:
A. Describe in detail the changes to equity accounts, including common stock,
treasury stock, or additional paid in capital (i.e., whether the company raised
funds or retired stock).
B. Explain how the changes compare to the net income or other sections of the
balance sheet.
C. Identify whether the company is paying out dividends.
D. Describe in detail how that the company’s dividend payouts have changed over
the past five years.
E. Describe in detail the changes in “total equity” (representing the current “book
value” of the company).
[Insert text.]
4. Explain what the company’s current and prior year liquidity and debt-to-equity ratios say
about the company’s financial health. Consider the following questions to guide your
response:
A. What is an appropriate level of debt?
B. How does this year’s performance compare to the previous year?
[Insert text.]
Income Statement and Cash Flow Analysis
1. Explain the profitability ratios that are included in the company’s financial statements.
Include the following detail in your response:
A. Explain any trends and relate any changes back to the balance sheet and income
statement accounts used in the ratio calculation.
Use appropriate profitability ratio(s) and a vertical analysis (using the common-size
analysis in the Project Workbook Template).
.
[Insert text.]
2. Explain the profitability of the company for the prior and current years. Consider the
following questions to guide your response:
A. What does a vertical analysis of the company’s gross revenue show you? What is
the percentage (%) of change year over year for these past five years?
B. How are the company’s COGS and gross profit margin being managed?
C. How are the company’s sales, general, and administrative expenses being
managed as a percentage of sales? What does this tell you about the company’s
current business cycle? Remember, it is normal for this percentage to rise when
sales are dropping and fall when sales are rising. If this is not happening, what
might be the reason?
Use appropriate profitability ratio(s) and a vertical analysis (using the common-size
analysis in the Project Workbook Template).
[Insert text.]
3. Describe what free cash flow is and how it is calculated.
[Insert text.]
4. Explain the free cash flow history for the company.
Search the company’s most recent 10-K filing first for a discussion from management on
their free cash flow. If there isn’t anything in the filing, do an internet search for the
company’s free cash flow history.
[Insert text.]
5. Explain the data reported in the cash flow statement for all five years reported. Include
the following details in your response:
A. Identify the amount of cash flow reported from operations.
B. Identify the amount of cash flow reported from investments.
C. Identify the amount of cash flow reported from financing.
D. Explain the correlation between each of these categories of cash flow for the past
five years.
[Insert text.]
Normalization Adjustments Analysis
1. Define the term normalization adjustment.
[Insert text.]
2. Identify three examples of balance sheet normalization adjustments that might appear.
[Insert text.]
3. Identify three examples of income statement normalization adjustments that might
appear.
[Insert text.]
Summary
1. Summarize your findings for the valuation team. Include the following details in your
response:
A. Explain what you learned as you researched the company.
B. Identify the key points the valuation team needs to be aware of.
Use the common-size analysis in the Project Workbook Template to inform your
summary. Include key identifiers from your research in your summary.
[Insert text.]
2. Create at least one effective visualization that supports key points. Include the following
detail in your response:
A. Appropriate labels for the visualization(s).
Examples of ideas for your visualization(s) include a line chart showing sales growth and
gross profit margin and other expenses or a graph of the ratio analysis data.
[Insert visualization(s).]
Milestone Two References
[Insert text.]
Milestone Three: Economic Outlook
Microeconomic Industry Analysis
1. Explain the industry outlook for the company. Include the following details in your
response:
A. Identify the primary industry the company operates in.
B. Provide a general overview of the size of the industry both domestically and
internationally.
C. Explain current industry trends and emerging technologies that might impact the
company’s industry in the future.
[Insert text.]
2. Explain how the supply and demand for the company’s industry may affect consumer
behavior. Include the following details in your response:
A. Explain major events have impacted supply and demand for the company’s
industry.
B. Identify if there have been any supply chain issues. If so, explain how these issues
have affected overall supply and demand.
[Insert text.]
3. Evaluate the competitive landscape for the company. Include the following details in
your response:
A. List the company’s current percentage of the market share in this industry.
B. List the company’s top three competitors and what percentage of the market share
each competitor holds.
C. Explain how the percentage of market share changed over the last three years for
the company and its competitors.
D. Explain the new competitors entering this industry.
[Insert text.]
4. Identify key data from the SWOT analysis for the company and its primary competitor.
Include the following details to your response:
A. Provide the citation for SWOT analysis from a reputable source for the company.
B. Provide the citation for SWOT analysis from a reputable source for the
company’s primary competitor.
C. Identify the company’s major strengths and weaknesses compared to the
company’s primary competitor.
[Insert text.]
5. Evaluate the impact of new or recently changed regulations specific to the company’s
industry. Include the following details in your response:
A. Provide a citation to the specific new regulation.
B. Explain the advantages and/or disadvantages of the new regulation(s) for the
company’s industry.
[Insert text.]
6. Identify potential international issues with the company expanding into global markets.
Consider the following questions to guide your response:
A. What historical data may affect the company as it expands?
B. What potential future issues may arise based on current economic conditions?
Search the company’s most recent 10-K filing first for information on protentional
international issues. Search in Part 2, Item 7: Management’s Discussion and Analysis of
Financial Condition and Results of Operations. If there isn’t anything in the filing, do an
internet search for news stories and/or issues regarding the company’s experience with
expanding into global markets.
[Insert text.]
7. Describe labor market trends in the company’s industry.
[Insert text.]
8. Explain how labor market trends might impact the company’s operations.
[Insert text.]
General Macroeconomic Analysis
1. Explain macroeconomic trends that might impact the company and/or its industry now or
in the future. Consider the following questions to guide your response:
A. How could economic output and consumption trends impact the company and/or
its industry?
B. How have interest rate changes impacted the company?
C. How might the current Gross Domestic Product (GDP) and its projected future
movement impact the company’s future operations?
[Insert text.]
2. Identify changes in monetary policy trends that impacted the domestic and/or global
economy the company’s operates in.
[Insert text.]
3. Explain how monetary policy changes have affected the company and/or its industry.
[Insert text.]
4. Identify changes in trade policy trends that impacted the domestic and/or global economy
the company operates in.
[Insert text.]
5. Explain how trade policy changes have affected the company and/or its industry.
[Insert text.]
Summary
1. Summarize your findings for the valuation team. Include the following details in your
response:
A. Explain what you learned as you researched the external factors for the company.
B. Identify the key points the valuation team needs to be aware of.
[Insert text.]
2. Create at least one effective visualization that supports key points. Include the following
detail in your response:
A. Appropriate labels for the visualization(s).
Create an effective visualization(s) based on your research to support your summary
report. Examples of ideas for your visualization(s) include a graph showing any of the
key economic indicators over the past five years, showing changes in market share of key
competitors over the past 3-5 years, or showing the industry outlook projections.
[Insert visualization(s).]
Milestone Three References
[Insert text.]
Project
Assumptions and Rationale
Address rubric criteria 1-7 in this section.
[Insert text.]
Analysis
Address rubric criteria 8-10 in this section.
[Insert text.]
Project References
[Insert text.]
Valuation Team Report
This Valuation Team Report will be submitted separately. Refer to the Project Guidelines and
Rubric for submission guidelines.

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