Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of SPRINT NEXTEL for the years 2005, 2006, and 2007. In addition to reviewing the traditional financial performance indicators, you are also to review SPRINT NEXTEL's past and current stock performance for the same respective periods. Your report is to consist of three parts:
(1) An evaluation of SPRINT NEXTEL's financial performance for the period 2005, 2006, & 2007.
(2) An evaluation of SPRINT NEXTEL's stock performance for the period 2005, 2006, & 2007.
(3) Finally, a specific recommendation, with supporting rationale, as to whether or not NEXTEL's recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.
To assist you in your task, the CFO has provided the following general guidance. Since it is recognized that the Telecommunications industry is undergoing a major contraction, it is very important to comparatively evaluate SPRINT NEXTEL's financial and stock performance trends against its Industry.
You are to consider all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. These factors include, but are not necessarily limited to financial statement analysis, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports - when these documents are available.
The solution determines if SPRINT NEXTEL is financially viable in the next three years. A report is prepares for CFO.