The two companies that need to be compared is PayPal and Square Inc.
For this assignment, apply the next three steps of the nine-step assessment process detailed in Assessing a Company’s Future Financial Health (i.e., Step 5: External Financing Need, Step 6: Target Sources of Finance, and Step 7: Viability of 3-5 Year Plan) to compose further assessment of the company/competitor pairing analysis as below:
- Current financial plan. Interpret current equity valuations in order to recommend strategic solutions regarding future financial goals. Consider how stock splits and stock dividend allocations can impact the plan.
- Future external financing needs. To support growth, companies need capital, and external financial needs are vital any firm’s future success. Describe external financing needs sufficient to support your ongoing analytical assumptions and pro forma financial statements for your chosen company and competitor.
- Access to target sources of external financing. You will need to consider the amount of financing, timing, length of time required, and deferability of financing options.
- Viability of a 3-5 Year Plan. Assess the consistency of the plan with the firm’s goals, and the achievability of both the operating plan and the financing plan you are proposing