Recent Question/Assignment

h) Growth and Risk analysis. It would be normal in this section to include business risk analysis. Business risk is the standard deviation of EBIT ROA (see Appendix B) and has nothing to do with the financial (or bankruptcy) risk of a company. Other pertinent analysis would include the company’s sustainable growth rate.
i) Prospective analysis: Prospective analysis involves forecasting of future consolidated balance sheet and income statement. Some concluding commentary on the company and maybe its prospects for growth, prospects as a takeover target, high risk of failure or whatever you see. Do not be afraid to track the share price and see if you can use that to understand where the company has come from and where the market thinks it might be going. You may want to even come up with a first thought on whether an investor should consider buying the stock, selling or holding the stock – without getting very technical