Scenario
In this project, you will step into the role of a financial analyst tasked with conducting a comprehensive financial analysis for a potential corporate investment opportunity. Your goal is to create a detailed financial analysis report that will guide the investment decision-making process for the corporation you select from the Final Project Student Spreadsheet, which is linked in the What to Submit section.
You have been hired by a prominent financial consulting firm known for its expertise in providing data-driven insights to corporations seeking to make informed investment decisions. Your firm has a reputation for delivering accurate financial analyses that aid companies in identifying profitable investment opportunities.
Prompt
Provide an explanation of the impact of external factors on the financial position of Johnson & Johnson. Use the Interest Rates Implications tab in the Final Project Student Spreadsheet to demonstrate the implications of interest rate changes on at least one of the calculations you performed in Milestone One.
Specifically, the following critical elements must be addressed:
Macroeconomic Items: The CEO of Johnson & Johnson is convinced that financial analysis should hinge only on what is happening internally within the company. Convince the CEO otherwise based on the following:
Analyze the implications of interest rate changes on any of your calculations. Support your claims.
Determine how an issue in the overall stock market—negative or positive—might impact the company’s stock valuation numbers, other financial variables, or its overall portfolio management. Support your response with evidence through research, references, and citations using proper APA style.
Analyze the impact of any external factor (i.e., external to the company) discussed throughout the course on the company’s financial position. Technological factors, competitive factors, and global factors are examples of external factors. Justify your reasoning through research, references, and citations using proper APA style.
What to Submit
Your paper must be submitted as a 2- to 3-page Microsoft Word document, not including your calculations, which should be completed in the Final Project Student Spreadsheet. Use double spacing, 12-point Times New Roman font, and one-inch margins. Cite sources according to APA style. Your supporting research should be as up to date as possible. Any news stories, press releases, or additional sources must be dated within the last 60 days. Company data should be no more than one year old. Using older data may result in being asked to resubmit your work.
