Identify the risks.How might your firm be negatively impacted by fluctuations in the money supply?
Risk Analysis of Final Project Company
Overview: In this short paper, you will address the risks confronting the firm you have chosen for the final project. The paper will inform your work on Milestone Three (due in Module Seven) and the final project (due in Module Nine).
Prompt: Referring to the prompt in the Final Project Guidelines and Rubric document (in the Assignment Guidelines and Rubrics section of the course),assess the potential for the macroeconomic events described in the scenario to pose financial risks to the firm you have chosen for the final project (JPMorgan Chase & Co., AT&T, or Qualcomm).
Specifically, address the following critical elements:
Accurately identify the risks. For example, how might your firm be negatively impacted by fluctuations in the money supply? Provide specific examples to illustrate each identified risk.
Use appropriate financial tools to measure (i.e., quantify) the risks. For example, consider calculating your firm’s debt-to-capital ratio, debt/equity ratio,interest coverage ratio, and degree of combined leverage.