words and reference page
Tony has promoted you! Now, he is going to take your analysis and
information into account. He wants your input and information.
Discuss the following:
all of the financial analysis that you have completed, in what
direction would you recommend Tony Fortune take the company?
sure to justify your answers using both qualitative and
quantitative analysis (with the help of financial figures from
your financial statements).
Fortune, a tenured and well-respected turnaround guru, pondered
his latest employment offer as he was driving home from an
eventful meeting with a number of key electronic equipment
executives. He had been asked to assume the presidency at a poorly
performing company, Electronic Equipment Venture (EEV), which is
owned by Electronic Equipment USA. Certainly he could refuse, but
Tony flourished on reinventing and remolding underperforming
companies. During the last 10 years, he was instrumental in
overseeing three successful business turnarounds, four
consolidations of business units, and five successful
divestitures. This latest endeavor, based on his understanding,
would be a challenge because the board of directors was seeking
concrete data that would allow a quick resolution to the company’s
Equipment Venture is a producer of electronic equipment dating
back to the 1970s. During the company’s first 30 years, it was a
pioneer in the development, design, and manufacturing of
electronic equipment. The competitive environment changed
tremendously in the late 1990s, however, and EEV’s market share
eroded from 75% to 25% as other firms recognized this untapped
market. Reacting to the loss in market share and unacceptable
deterioration in profitability, management attempted to revitalize
the company by increasing the level of research and development as
well as acquiring two smaller but more sophisticated firms.
the added research and development, along with the additional
resources, profitability continued to worsen. Faced with slow
stock growth at Electronic Equipment USA, primarily because of
EEV, the board of directors has been pressed to make a decision
regarding EEV. Recognizing that factual data is crucial to the
decision process, the board proceeded with authorizing management
to employ the appropriate resources needed to conduct the
evaluation and valuation of EEV.
this challenge and knowing he has only 5 weeks to complete the
analysis, Tony spent several days developing a strategy for
generating a proper and thorough valuation and evaluation of the
firm’s financial position.
words + references
of your presentations were outstanding and displayed your level of
financial knowledge and expertise in the area of financial statement
analysis. You have been asked to be a guest lecturer in a course at
your alma mater college, CTU. As a result, you will have an
opportunity to explain to students how they should tackle financial
statement analysis. Prepare a presentation that will include the
steps you went through to thoroughly analyze the financial statements
so that you could make the recommendation—keeping in mind that you
want to simplify the process as much as possible. You do not need to
include how to do the financial calculations, but rather how you
determined the recommendation based on the information you were
given. Provide a list of potential “consultants” and resources
they could reference to help them get through the assignments you
have just completed.
and financial teams in organizations have an obligation to provide
financial reports to meet the requirements and guidelines provided by
a number of regulating bodies. In addition, they must uphold a high
level of professional ethical standards when preparing reports that
reflect the health of the organization to its stakeholders.
in your PowerPoint Presentation:
least 2 ethical issues that managers and financial teams face when
preparing financial reports.
regulations should be considered when making a decision about each
an ethical solution for each issue that you introduced.
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