Chapter 3: Do financial statements help in Financial decisions and corporate valuation

Chapter 3

METHODOLOGY

This chapter presents and discusses the method of research used and the procedures utilized by the researcher in the study of ascertaining how financial statement of the Compass Group PLC, Toronto Dominion Bank, Harris Corp, Morgan Stanley, and Boeing Co. Help in Financial Decisions and Corporate Valuations. It likewise includes the sources of data and the statistical treatment that were employed by the researcher.

The Research Method

This study made use of the descriptive quantitative method of research as it was aimed at ascertaining how Financial Statements Help in Financial Decisions and Corporate Valuations.

This research study was conducted for twelve (12) months considering the number of days for gathering data. This varied from different research company of mixed variables.

The data involved in this study were from: http://www.reuters.com/finance / stocks/incomeStatement?stmtType=CAS&perType=ANN&symbol=CMPGF.PK,

http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp?symbol=TD&dataset=cashFlow&period=A&currency=US%20Dollar,

http://www.reuters.com/finance/stocks/incomeStatement?stmtType=BAL&perType=ANN&symbol=HRS.N, http://www.reuters.com/finance/stocks/income Statement?stmtType=BAL&perType=ANN&symbol=MS.N, and http://www. reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=ANN&symbol=BA.N. From the Dataset Series: Balance sheet, income statement, and Cash flow of the five selected banks were used.

The dataset series from: http://www.reuters.com/, http://investing.Business week.com and http://finance.google.com were also collected to find out how financial statement of the Compass Group PLC, Toronto Dominion Bank, Harris Corp, Morgan Stanley, and Boeing Co. Help in Financial Decisions and Corporate Valuations.

The Compass Group PLC, Toronto Dominion Bank, Harris Corp, Morgan Stanley, and Boeing Co. companies’ profile for the last five years in terms of the company profile of the selected banks of the United State of America in terms of: a) Net Income, b) Total Assets, c) Total equity, d) Total Debt, e) Total Liabilities, f) Total Revenue, g) Total Cost, h) Current assets, i) Current Liabilities, and j) Market Value were presented to identify the profitability, efficiency, leverage, return on assets, return on equity, market value and firm value of the company.

The final phase was the analysis and presentation of the data and the drawing of the conclusions and the recommendations.