FINANCIAL ANALYSIS:BANK OF AMERICA
Project requirements must include the following analysis:
- One page description of the corporation: its products or services, major markets.
- b. Overall trend assessment of the company’s balance sheet, income statement, and statement of cash flows for the last three years.
- Selected ratio and trend analysis. Ratios must include liquidity, asset management, solvency, profitability, and market value ratios. A three-year ratio analysis is the minimum expectation.
- Analysis of the company’s stock price and EPS trends for the last three years. Analysis must include comparison to key market competitors.
- Evaluation of the firm’s Beta in relation to a specified market index (eg. S&P 500, Nasdaq 100, Dow 30).
- Assessment of the firm’s capital structure including any significant changes in the firm’s capital structure over the last three to five years.
- g. Calculate the WACC (weighted average cost of capital) based on the most recent balance sheet data.
- h. Assessment of the firm’s cash flow and determination of the firm’s free cash flow over the last three years.
- Closing summary of the firm’s financial health in relation to the overall economy and within its industry.