Ask Question, Ask an Expert


Ask Financial Management Expert


The specific objective of this written research exercise is to make an executive-level financial report to the chief financial officer (CFO) of a mythical company by which you are employed as a financial analyst. This report will pertain to the financial evaluation of a real, publicly-traded company. This will need independent research (Web-based or library), careful financial analysis, and the proper application of key financial theories and formulas.


You are a financial analyst with the mythical High Technology Corporation (HTC). HTC is an established manufacturer of a line of electronic components and it services an international market. HTC is a new fully integrated wireless communication service for world-wide use. A competitive technical and economic product evaluation has determined that Disney (a real publicly traded company) is the best potential supplier. Disney is providing a competitively favorable deal.

Though, based on some serious general concerns regarding the fallout of companies in the IT industry in general, the CEO has asked your CFO to conduct a financial analysis of Disney to find out if it is prudent to commit to this company's communication system. The cost of cutting over to the new communication system is significant and any interruption in support throughout the next few years would adversely affect HTC's performance and profit. Specifically, the problem is, will Disney be financially viable over the next two to three years?


Your specific assignment is to conduct research, analyze it and prepare a report for the CFO on the actual financial performance of Disney for the years 2009, 2010 and 2011. Additionally to reviewing the traditional financial performance indicators, you are as well to review Disney’s past and current stock performance for the same periods. Your report is to comprise of three parts:

A) An evaluation of Disney’s financial performance for the periods 2009, 2010 and 2011.

B) An evaluation of Disney’s stock performance for the periods 2009, 2010 and 2011.

C) Finally, a specific recommendation, with supporting rationale, as to whether or not Disney 's recent financial and stock performance are of adequate financial strength to warrant entering to a long-term commitment with the company.

To assist you in your task, the CFO has given general guidance. As it is recognized that the telecommunications industry is undergoing a major contraction, it is very significant for you to compare Disney’s financial and stock performance trends with those of the industry.

You are to consider all essential and relevant financial performance and stock information, trends and projections in supporting your recommendation. Relevant factors comprise, but are not essentially limited to, financial statement analyses, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations and management and investment reports, when such documents are available.


Your final report is to be an executive-level financial report directed to the CFO. This report should be no longer than six (6) single-spaced typewritten pages. Comprise appropriate comparative, quantitative and qualitative analyses and conclude with a specific and supported recommendation based on the projected financial viability of Disney for the next several years.

Necessary research data, financial calculations and other documentation required to support your recommendation should be referred to in summary form in your report and attached in detail as enclosures. All main sources must be referenced. There is no set limit to the size of the enclosures; however it is recommended that only essential enclosures be attached. You must use references and a bibliography to recognize any remaining supporting documents you wish to include.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9804

Have any Question? 

Related Questions in Financial Management

Steele-greene inc sgi is considering a project to reduce

Steele-Greene Inc. (SGI) is considering a project to reduce costs in the production of engineered wood products. New equipment for the project would cost $280,000. Installation and setup costs would cost an additional $2 ...

The chapter opener states that many investors who bought

The chapter opener states that "many investors who bought stocks in 2000 and held them through 2010 found that they had received a negative real return on their investment over the 10-year period." Why would investors ha ...

A firm has a net income of 300 an increase in accounts

A firm has a net income of 300, an increase in accounts receivables of 30, depreciation of 55 and a decrease in accounts payable of 25. What is its operating cash flow (CFO)?

Learning objectives for course1 obtain a comprehensive

Learning Objectives for Course 1. Obtain a comprehensive understanding of the financial environment and adequately define financial terms 2. Have an ability and readiness to formulate, examine and defend business case ju ...

The 1-year interest rate is 7the 1-year interest rate

The? 1-year interest rate is 7%.The? 1-year interest rate expected in 1 year is 5 %. The? 1-year interest rate expected in 2 years is 7 % What are the? 2-year and? 3-year interest rates predicted by the pure expectations ...

Volbeat corporation has bonds on the market with 115 years

Volbeat Corporation has bonds on the market with 11.5 years to maturity, a YTM of 9.6 percent, a par value of $1,000, and a current price of $947. The bonds make semiannual payments. What must the coupon rate be on the b ...

You purchased a machine for 113 million three years ago

you purchased a machine for $ 1.13 million three years ago and have been applying? straight-line depreciation to zero for a? seven-year life. Your tax rate is 40 %. If you sell the machine today? (after three years of? d ...

Albridge plc is planning to buy the whole of woodier plcs

Albridge plc is planning to buy the whole of Woodier plc's equity for cash. At present no news has been officially released to the market, and senior management are concerned as to how the share price of Albridge plc wil ...

Antiques r us is a mature manufacturing firm the company

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10.65, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 12 percent on this stoc ...

You are the manager of a stock portfolio worth 10500000 it

You are the manager of a stock portfolio worth $10,500,000. It has a beta of 1.15. During the next three months, you expect a correction in the market that will take the market down about 5 percent; thus, your portfolio ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen