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Coffee Company Analysis Assignment. VS. Task. A wealthy investor has given you $100,000 to invest in ONE of his two favourite coffee companies: Tim Hortons or Starbucks. He would like you present your choice in the form of a well written, detailed and typed formal report.
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Task • A wealthy investor has given you $100,000 to invest in ONE of his two favourite coffee companies: Tim Hortons or Starbucks. • He would like you present your choice in the form of a well written, detailed and typed formal report. • The report should include the following sections:
Task Continued. • Introduction (5 Marks) • A brief history of the company and description of their core business (in your words). What makes these business different from one another. • Tim Horton’s and Starbucks Horizontal Analysis (16 Marks) • For 2011 and 2012 Calculate: • Return on Equity • Return on Assets • Profit Margin • Gross Profit Margin • Current Ratio • Working Capital • Quick Ratio • Debt to Equity Ratio • Make note of any year to year trends that you have observed with the ratios. Is the company stronger or weaker than they were in 2011?
Task Continued. • Media Analysis – Find and summarize an article for each company that confirms or explains any of the observable trends demonstrated in the horizontal analysis. (10 Marks) • Investment Rationale – Choose a company to invest in and rationalize your choice by referencing any trends observed in the Horizontal Analysis and the articles. (5 Marks)