Question;The;research paper assignment is worth 220 points or 22% of the course grade. A grade of C or better is required as;per MBA policy as this is the Final Assessment for the course.;The objectives/purpose of the research paper;project are to enable you to do a comprehensive financial analysis of a;publicly traded corporation, and provide you with substantial information for;you to make recommendations regarding investing in this corporation.;Your financial analysis;report will be driven by a rigorous ratio analysis, and aggressively supplemented;with your written analysis, interpretation, and evaluation of the data.;Your research should be;strategically driven by two probing questions;-Would you invest your financial capital in the selected firm as a;shareholder?;-Would you invest your human and intellectual capital in the firm as an;employee?;Steps in preparation of;financial analysis report;1.);Select a publicly held company;2.);Select a benchmark firm to compare your company;against. The benchmark firm is typically the largest competitor.;3.);Obtain the firm?s balance sheet, income statement;and statement of cash flows for;the past;5 years. Download or read the firm?s annual report.;4.) Go;to: http://www.sec.gov/edgar/searchedgar/webusers.htm;Research EDGAR?s database;for additional SEC report filings: 8-k, 10-Q.;4.);The following table is the type of Excel or Word table that should be;used to gather and report your;ratio and financial performance data. Note the 5 financial diagnostic;categories that should be used in your analysis.;Financial diagnostic;categories;Chosen company;vs.;Benchmark;competitor;1.);Liquidity of short-term assets;-Current ratio;-Cash ratio;-Quick ratio;-Current ratio;-Cash ratio;-Quick ratio;2.);Long-term debt-paying ability;-Debt ratio;-Debt-equity ratio;-Times interest earned;-Debt ratio;-Debt-equity ratio;-Times interest earned;3.);Profitability;-Net income/sales;(profit margin);-Net income/assets (ROA);-Net income/shareholder;equity (ROE);-Net income/sales;(profit margin);-Net income/assets (ROA);-Net income/shareholder;equity (ROE);4.) Asset;utilization/ management efficiency;-Total asset turnover;-Inventory;turnover measures;-Accounts receivable;turnover;-Total asset turnover;-Inventory;turnover measures;-Accounts receivable;turnover;5.) Market;measures;-Price/earnings ratio;-Earnings per common;share;-Dividend payout;-Price/earnings ratio;-Earnings per common;share;-Dividend payout;Use 2-3 ratios per;diagnostic category. Place your ratio calculations in the table for your;selected companies?primary company and benchmark competitor. Using 5 diagnostic;categories, and 3 ratios to assess each category, results in 15 ratio measures;per company that will be compared side by side.;6.) To;validate your research, 5 years of data should be analyzed.;7.) The financial analysis report must be written;properly. They must include a title page, a table of contents, and a reference;page. For both midterm and final report, information sources from the web, etc.;must be cited properly, using APA style.;This means that every table that you cut and pasted;or typed from the web must have a source at the bottom of the table AND that;citing must also be included in a reference page at the end of the report.;The parts of the research paper are discussed;below. The completed report (parts a through h) is due day 7 of week 6. Your;project should include;a.;An overview of the corporation.;i. Provide;general information regarding the type of business, products and/or services;location of headquarters, name of CEO, number of employees, and countries of;operation, etc.;b.;The latest financial statements;i. Get;the income statement, balance sheet, cash flow statement, and the statement of;owners? equity for the past fiscal year. Create Turnitin-friendly versions of;the financial statements, do not just ?cut and paste? them in your report. Do;not forget to cite the source under each statement.;ii. If;you cannot cut and paste them, you may have to type in the information in a;table in your report.;c.;A summary of each financial;statement;i. Take;each statement and state the key parts in words. Tell a story from each of the financial statements. For example, for the income statement;the story starts like, ?Total Revenues in 2010 were $10 billion, while Cost of;Goods Sold were $8 billion, leaving a gross profit margin of $2 billion, or 20;percent of total revenues?.After taking out interest and taxes from EBIT, the;net income was $0.5 billion, or 5 percent of total revenues.?;d.;Ratio calculation (include 5;major types of ratios. Refer to chapter 3, Analysis of Financial Statements);i. Organization;of this section is based on the FIVE types of ratios listed in the text;book. Calculate the ratios from;the financial statements in part c above using Excel or your calculator and;present them in a table.;ii. Find;industry financial ratios online (eg. Yahoo.com) and compare your corporation?s;ratios to these industry ratios.;iii. Present;your results following the five types of ratios discussed in part d.;iv. A;table with both corporation and industry ratios is required;v.;e.;Discussion of key statistics;provided by sources like Yahoo finance.;i. There;are many different other statistics available for your corporation. These;include market value, beta, and diluted EPS, etc. Discuss some of the key;statistics that you think can assist you to determine if this corporation is a;good buy or sell.;f.;For you to decide if a;corporation?s stock is a good buy or sell, you must forecast several key;variables, including the stock price.;i. Use;historical prices (5 years of monthly data recommended) and forecast the stock;price for the next year. Use regression analysis, and/or moving average, etc.;to create your forecast.;ii. Create;a graph from the historical data and show your forecast on the same graph. You;can add a trend line to the graph to help you with a forecast. Include the graph in your report.;iii. You;need to say specifically what the forecasted value of the stock price is.;iv. You;must address the question, ?Is this forecast reasonable?? Must you amend your analysis to get a;more reasonable forecast?;g.;Other information pertinent to;the corporation that could affect its future performance and stock price.;i. This;could include dividend policy, capital structure, bond ratings, expert opinions;on TV, new projects, litigation, regulation, etc. Search for information on the;web regarding this corporation. Look at company complaint blogs, etc.;h.;Recommendation regarding the;future of this corporation.;i. Is;the stock a good buy, average buy, or a poor buy (implying a good sell)?;ii. Include;a justification of your recommendation based on your analysis and;research.
Paper#51120 | Written in 18-Jul-2015Price : $57