Comparing Capital
Expenditures
Select a company and access the last three years’ annual reports. Next, select
a company that is a direct competitor and download the previous three years’
annual reports.
Research Tip: The “Mergent” database in the Ashford Library contains company
profiles and financial information for publicly traded companies and their
competitors. To access this database enter the Ashford Library and select “Find
Articles and More” in the top menu panel. Next, select “Databases A-Z” and go
to section “M” for “Mergent”. For help with using Mergent use Mergent Online
Quick Tips.
Tip: For help with reading an annual report access this handy guide from
Moneychimp (http://www.moneychimp.com/articles/financials/fundamentals.htm)
Using the annual reports of both companies, complete the following in a three-
to five-page paper, excluding title and reference page(s):
For each company, report the amount of capital spending for the past three
years. Quantitatively determine whether the amount of capital spending has been
consistent or if it has fluctuated. Be sure to provide the calculations used to
determine your answer. Describe the capital expenditures of each firm and the
factors that impacted the companies’ debt capacities and capital structures.
Next, compare the level of capital spending across the two firms. Point out how
the spending was similar and/or different and speculate why the similarities or
differences might exist. You must use at least three scholarly sources in
addition to the text. Support your comparison with evidence from the text,
external sources, and articles/reports from the Mergent database in the Ashford
University Library.
Format the paper according to the APA 6th edition style guide as outlined in
the Ashford Writing Center. Be sure to properly cite your resources using APA
style.
Carefully review the Grading Rubric for the criteria that will be used to
evaluate your assignment.
MUST PASS WRITECHECK ORIGINALITY CHECK
