(solution) Running head: FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2

(solution) Running head: FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2

The 3 assignments submitted for Topic 2, 4 and 6. Please use these for steps 1 and 3. The companies are Walt Disney and Comcast. 

Part One

Apply the final two steps of the nine-step assessment process detailed in Assessing A Company?s Future Financial Health (i.e., Step 8: Stress Testing and Step 9: Financing and Operating Plan for Current Year) to compose further assessment of the company/competitor pairing analysis as below:

  1. Perform stress testing under scenarios of likely adversity and value your firm using appropriate valuation techniques on the pro forma financial data analysis you constructed earlier in the course.
  2. Compare your results from step #1 against the current stock price of your chosen company and competitor. Construct an argument in favor of investing in either the chosen company, or the competitor, with sufficient supportive detail and/or data to make your case.

Part Three

Develop a 250-word “introduction” to your analysis and proposal that can serve as an overview in the event that you do present this to a single or group of potential investors. Consider factors that might impede an individual?s ability to focus on the information, and present only key and other potentially relevant points this individual or group needs to know.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

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 this assignment to Turnitin. Please refer to the directions in the Student Success Center.

Running head: FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2 Financial Analysis and Proposal Component 2
Bryson Penrod
Grand Canyon University: FIN-650
August 24, 2016 1 FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2 2 Financial Analysis and Proposal Component 2
The nature of revelations gave in the Management's Discussion and Investigation MD&A
is a subject of proceeding with worry on controllers. Besides, an assortment of administrative
bodies has as of late started an exchange on the degree to which the reviewer ought to required
with MD&A exposures. Scholarly research yields data about express and verifiable data that
might be helpful to the examiner in boosting both the nature of exposures and the nature of the
review. Exploiting this potential complementary collaboration between revelation quality and
review quality may prevent the requirement for extra administrative activity, in this manner
presenting advantages upon both professionals and the contributing open.
Management?s Discussion and Analysis
A report that introduces a Federal reporting element's money related explanations in
conformance with Federal bookkeeping standards ought to incorporate administration's exchange
and examination (MD&A) of the budgetary proclamations and related data. MD&A ought to
give a clear and succinct portrayal of the reporting element and its primary goal, exercises,
program and budgetary execution, frameworks, controls, right consistency, money related
position, and fiscal condition. MD&A ought to give an adjusted presentation that incorporates
both positive and negative data about these points. MD&A ought to viewed as "required
supplementary data" as that term utilized as a part of inspecting gauges (et.al).
Disney and Comcast financial statements
The Force was certainly with us this year! Monetary 2015 was another triumph no matter
how you look at it as far as innovativeness Furthermore, development and also money related
execution. For the fifth year in succession, The Walt Disney Company conveyed record results
with income, net pay and profit per share all achieving notable highs at the end of the day. It's a FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2 3 remarkable winning streak that addresses our proceeded with the administration in the
stimulation business, the mind blowing interest for our brands and establishments, and the
exceptional spot our narrating has in the hearts and lives of a vast number of individuals around
the globe. All of which is significantly more surprising when you recollect that Disney began
stimulating groups of onlookers very nearly a century back.
The world positively looks a great deal not the same as it did when Walt Disney initially
opened shop in 1923, thus does the organization that bears his name. Our team keeps on
advancing with every era, blending dearest characters and narrating conventions with unusual
new encounters that are pertinent to our developing worldwide gathering of people (Richmond).
Strategy to achieve higher ROI and market position
In the larger part of ventures, there is one firm that is in the main perceived to be the
pioneer. It commonly has the biggest piece of the overall industry and, by the prudence of its
evaluating, promoting power, dissemination scope, mechanical progress and rate of new item
presentations, it decides the nature, pace and bases of rivalry. It is this strength that gives the
benchmark to other organizations in the business. In any case, it should underline that market
administration, albeit regularly connected with size, is in all actuality a more complex idea and
ought to rather be found as far as an association's capacity to decide the nature and basis of
rivalry inside the business sector. A qualification can like this made between a market initiative
that is based principally on size, and what may be named 'thought-action " that is based less on
size, in any case, upon advancement and diverse examples of considering (Wernerfel).
In spite of the fact that a position of business sector authority has undoubted attractions,
both as far as the extension that regularly exists to influence others and a perhaps higher degree
of profitability. Pioneers have very regularly in the past demonstrated to be powerless despite an FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2 4 assault from a challenge or when confronted with the requirement for a noteworthy innovative
change. Assuming. Subsequently, a business sector pioneer is to stay as the active organization; it
needs to safeguard its position continually.
Ratio Analysis
Comcast is a very much overseen organization with a considerable measure of
development potential particularly in the voice, what's more, web portions. The present change in
deals blend towards these higher edge groups looks encouraging. The business fragment likewise
looks encouraging. It averted the late money related turmoil with elegance, and it is prepared to
appreciate any uptick in the economy. Its ceaseless endeavors of cost lessening and additionally
quick organization of innovation have situated it as a solid player in the business.
There are a couple of potential dangers connected with it, for the most part, the wild
rivalry from RBOCs and the satellite TV and the impact of any future directions. Nonetheless,
these risks are not that extreme, and Comcast knows about the same and working towards killing
them. In term of numbers, it's money related proclamations look great. It is the most painful in
the business. It has a liquidity issue, be that as it may, that can clarified by the way of the firm. It
has been continually paying obligation and beginning from 2008 has started paying profits. As
far as products it looks amazingly modest in both supreme and also relative terms concerning the
industry and the S&P 500.
A DCF examination on Comcast recommends that it is at present underestimated and
demonstrates an upside capability of 38% while different numbers suggest a most extreme upside
of 70% and a base upside of 28%. At the end of the day it would be a balanced choice to put
resources into Comcast as quickly as time permits (osu). FINANCIAL ANALYSIS AND PROPOSAL COMPONENT 2
References
et.al, J. R. (n.d.). Management?s Discussion and Analysis: Implications for Audit Practice and
Research. Retrieved from aaapubs: http://aaapubs.org/doi/pdf/10.2308/ciia.2008.2.2.A26
richmond. (n.d.). The Walt Disney Company. Retrieved from richmond:
http://robins.richmond.edu/documents/cases/WaltDisney.pdf
Wernerfel, B. (n.d.). THE RELATION BETWEEN MARKET SHARE AND PROFITABILIT.
Retrieved from mit:
http://web.mit.edu/bwerner/www/papers/Therelationbetweenmarketshareandprofitability.PDF 5