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FIN 6406 Research Project

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Question;After completing your CMBA degree, you will very likely be in a position to help increase thefundamental value of your company. All the courses of the CMBA have been designed to giveyou the financial tools and analytical skills required to be successful managers. In FIN 6406, aresearch project is required as a course deliverable to help prepare you for this challenge inthe workplace. In this assignment, you will apply the knowledge and skills derived from thecourse and utilize aspects of what you have learned to produce a financial quarterly trend analysisof one company.For this three-phased research project, you will collaboratively in a group select a publiclytraded company to investigate over the course of the following weeks. Finally you will submit anindividual report which relies on the information from the group project, but requires you to makedecisions based on your own personal situation. You may choose a company where you arecurrently employed, a company where you might seek employment, a company you?ve readabout, or a company that piques your interest. For instance, you may research Starbucks (stocksymbol SBUX) because you drink a latte every day, Toyota (TM) because you drive their cars orhave been following the news, Amazon (AMZN) because you are interested in their electronicreading experience, the Kindle, own a Blackberry (Research in Motion RIMM) or Apple Iphone(AAPL).After you choose your company, you should submit it for approval as a group. Only groups whohave made an inappropriate choice of a publicly traded company will be notified. If you do nothear from your Academic Coach, assume that your company has been approved and proceedwith your research. This is Part One of the project worth 1% of your final grade.In Part Two A of the project your group will research sources, such as Yahoo! Finance and MSNMoney, for the financial highlights and trading information on your selected company. Using thesesites, you will compute the ratios for the most recent year-end of your chosen company. You willalso need to collect the quarterly data for the four quarters of your chosen company (with the lastquarter being of the same ending date as your year-end). An Excel template is provided for youto compute these ratios. You will research various internet sources for the financial highlights andtrading information on your selected company. Using these sites, you will compute the ratios forthe four most recent quarters of your chosen company. An Excel template will be provided for youto compute these ratios. This part is worth 6% of your final grade.Part Two B encompasses the final group report. It will include your ratio computations, afinancial trend comparison, an industry performance comparative financial analysis, and acomparative SWOT analysis. It is highly suggested that you use appropriate graphs and chartsto show the trend and comparisons. This report should be posted at the appropriate time throughthe file exchange of your group room, or as an attachment. This is worth 4% of your final grade.Part Three worth 4% of your final grade, is an individual report and should be posted in theindividual Assignment dropbox of Blackboard. This report should include the group portion(as an appendix) and your individual response to the questions posed. Create your reportas a Word or PDF document (save the excel spreadsheet and combine the pdfs if necessary).This report will include your ratio computations, a financial trend comparison, an industryperformance comparative financial analysis, and a comparative SWOT analysis. Mostimportantly, you will make decisions about what you as an investor have to lose or gain byinvesting in your selected company. You will also assume the role of a member of the Board ofDirectors of a bank that will consider whether to extend the company a line of credit. In thisculminating activity, the knowledge you have gained and the skills you have practiced will beapplied in a report similar to those you will eventually execute on a regular basis. As an individual,you will make decisions about what you as investors have to gain or lose by investing in yourselected company. You will also assume the role of members of the Board of Directors of a bankthat will consider whether to extend the company a line of credit. In this culminating activity, theknowledge you have gained and the skills you have practiced will be applied in a report similar tothose you may eventually execute on a regular basis. The Guidelines for this Research Projectfollow.Part One: Company Selection In this first phase of the research project, your group will provide the following informationnecessary to begin your research:1. The name of the publicly traded company you will investigate2. A brief paragraph (25 - 50 words) describing why you chose that particular company3. The three sources you will use to research the financial health of the company and itscompetitorsThe three parts of the Company Selection assignment are described in detail below. A workspaceis also provided so you can submit each part in this document.1. Publicly Traded CompanyYou may choose a company where you are currently employed, a company where you mightseek employment, a company you?ve read about, or a company that piques your interest. Forinstance, you may research Starbucks (stock symbol SBUX) because you drink a latte every day,Toyota (TM) because you drive this automobile or Amazon (AMZN) because you are interestedin their electronic reading experience, the Kindle. Type the name of the company you willresearch in the box below. Include the stock symbol for the company as in the examples above.Include the name of the major stock exchange on which the stock is primarily traded.2. Reasons for selecting this company.Write a brief paragraph (25 - 50 words) describing why you chose that particular company in thebox below.3. Research SourcesList the three sources you will use to research the financial health of your selected company andits competitors. Look for sources of free data, such as Yahoo Finance and MSN Money for thefinancial highlights and trading information. You will be using the data from these sites to computethe ratios for the four most recent quarters of your chosen company, computations that you willinclude in your final project. You may also find this data on the company web site or as part ofthe annual report. Note the market stock price should be obtained for the last trading day in eachquarter. List the sources below:1.2.3.Submit Part One as a group to the appropriate Assignment Dropbox.Part Two A: Numerical Analysis Section AComputationsIn this second phase of the research project, you will provide the following information necessaryto begin your research. Use the Excel spreadsheet posted in the Content section of Blackboardto input quarterly financial data for your chosen company. Quarter 4 should correspond to themost recent yearend data for the company as is produced in the company?s 10K report. Usingthe Excel template, compute the ratios for the four most recent quarters of your chosen company.Sources of free data include Yahoo Finance and MSN Money. Research at least three Web sitesto obtain the most accurate and reliable information. By using at least three sources, you will beable to select the financial information from two of the sources with the most closely correspondinginformation.Part Two B: Analysis Create your complete analysis report as a Word document by copying the relevant sections ofthe Excel spreadsheet into the document. This report will include your ratio computations, afinancial trend comparison and an industry-performance comparative financial analysis.Include a synopsis of the major ratios computed in Part Two-A as well as the following sections:Section BFinancial Trend ComparisonFor each of the five ratio categories: Liquidity, Asset Utilization, Profitability, Debt Utilization, andMarket Values, write a paragraph regarding the trend and implications about the future financialhealth of the company. You do not have to address every single category, just enoughto determine the overall trend.Section CComparative Financial Analysis of the company compared to the industry performance Write a paragraph regarding your company?s comparative performance to the industry average (or its closest competition for the most recent year. Many times it is not possible to find the industry averages for several of the categories. Supplement this analysis by looking at the results of the company?s closest competitor. You do not have to address every single category, just enough to determine the overall situation.Section DGraphical AnalysisDescribe the financial trend and comparative financial analysis graphically. Be creative here, a picture is worth a thousand words! Under each chart write one sentence summarizing the financial trend and comparative analysis from above.Section EEthicsBusiness ethics, as defined by Corporate Finance (2009) text authors? Ehrhardt and Brigham,?are a company?s attitude and conduct toward its employees, customers, community, andstockholders? (p.7). Provide an analysis of the ethics of your company that answers the followingquestions:? Is there a well-defined code of ethics or code of conduct?? Is there evidence of continued and repeated emphasis by the Board of Directors or theCEO, of the importance of ethical conduct to the corporation and its business ventures?? What processes are in place (if any) that make it safe and easy for employees or otherinterested parties to report ethical lapse?Include documentation from your research that supports your analysis of the ethics ofyour company.Part Three: Individual Report Conclusion and Decisions Based on the analyses above, arrive at an investment conclusion by writing a paragraph for eachof the following three decisions. You must support your conclusions with reasoned logicalstatements as to why or why not. Note, your decisions should reflect your own personal situation,in other words you should ?Know your client?, and in this case, you are the client.Section FConclusionsFeel free to include a synopsis of a SWOT analysis here and should be individualized based on your investment horizon. (SWOT: Strengths, Weaknesses, Opportunities, Threats).Decisions1. Would you place a personal deposit of one million dollars or more in the publicly traded stock of this company?2. Would you invest $500,000 in the debt (bonds) of this company?3. If you were a member of the Board of Directors of a bank and you sat on that Bank?sCredit Committee, would you grant a one million dollar line of credit for Overnight orTerm Federal Funds to this company?BibliographyAll sources are to be shown in accordance with APA manual of style, including Web pages.Employ a minimum of three sources with proper citations and incorporate your research into your essay. Include footnotes or endnotes, as well as works cited, at the conclusion of your paper. If information is downloaded from the Internet, make sure you put the date it was accessed.If quoting anything either directly or indirectly, give credit where credit is due with quotation marks as well as footnotes, endnotes or in text citations. For assistance on how to use proper APA citations, please see the APA Citation Guide in the Resources Folder or check out this resource:http://owl.english.purdue.edu/owl/resource/560/01Note: Individual section of the Research Paper should not exceed three pages.

 

Paper#48728 | Written in 18-Jul-2015

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