Please use my provided 10 K forms as well as grading rubric.
The purpose of this assignment is to analyze stockholders’ equity to recommend strategies for generating cash.
Understanding a company’s position as it relates to stockholders and stockholders’ equity is important when considering options and making decisions related to the strategies that should be implemented to generate cash for the company.
The chief executive officer (CFO) of the company wants to generate cash for the organization and has tasked you to review the current stockholders’ equity position for the company and use your findings to recommend strategies for generating cash flow. The CEO has requested you summarize your findings in a memo that is addressed to the CFO, but one that could be shared with other stakeholders.
In the Form 10-K for the company you selected in the Topic 1 assignment, review and study the following information related to stocks:
- Identify the types of stock, such as common or preferred stock, currently issued, and outstanding.
- Identify the presence of treasury stock and its impact on overall stockholders’ equity.
- Analyze debt vs. equity. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Excel: calculate the return on equity, debt to equity, capital structure leverage, and times interest earned ratios, and use them to identify the total make-up of stockholders’ equity as compared to debt.
Using the results of your analysis, write a 600-word memo to the CEO recommending and explaining the pros and cons of issuing new stock, reissuing treasury stock (if applicable), and issuing convertible bonds. Justify your recommendation using the 10-K stock information and ratios along with citing two substantiating academic sources that support your analysis of the stockholders’ equity.
Submit the Excel file that contains your ratios and the Word file memo to your instructor.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit the Word document for this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistance.
Young, S. D., Cohen, J., & Bens, D. A. (2019). Corporate financial reporting and analysis: A global perspective (4th ed.). Hoboken, NJ: Wiley. ISBN-13: 9781119494577