Final Assignment Details
A. Choose one publicly traded company in an industry that:
You are interested in working in
Intent to work/pursue a career in
Have work/volunteer experience in
Curious
Your company choice must meet the following criteria:
Company must be publicly traded (use EDGAR database)
Public information must be available on the Internet via the company’s annual report.
Public information must contain all three financial sheets: income statement, balance sheet, and cash flow.
Certified accountant must have reviewed annual report.
Instructions
Describe each of the three financial statement and their function.
Describe the forms 10-K, 10-Q, 8-K and their contents.
Analyze each of the company’s financial statements using any ONE ratio for each of the statements. What do you conclude ‘financially’ given the ratio that you chose from each of the financial statements?
Analyze the company’s ROE using DuPont analysis.
Given your analysis of the three financial statements and ratios, would you choose to invest in this company in the short-term, long-term, or not at all? Why?
B. Choose a company within the same industry as your original company
Compare and contrast the company’s three financial statements using any ONE ratio for each of the statements. What do you conclude, financially, given the ratio you chose from each financial statement?
Using two specific points, analyze the company’s ROE using DuPont analysis.
Given your analysis of the three financial statements and ratios, would you choose to invest in this company in the short-term, long-term, or not at all versus your original company? Why? Please be sure you touch on all three financial statements when you justify your answer.
In your opinion, which company is more financially stable? Why?
C.
Using the applicable financial statement, discuss the common stock price for YOUR company. How has it performed within the year? Indicate which financial statement you used to find the common stock.
Calculate the P/E analysis for your company. Provide a brief description of your calculation.
Provide a cash flow analysis. What does this tell you about the liquidity of the company?
How does the company’s common stock compare to typical government bonds? Which has a greater rate of return?
Give your analysis of the financial statements so far, how is the company performing in terms of growth?
D.
What are three ways for valuing individual stocks?
Which domestic company stocks compare in value with your individual stock? Why?
Which foreign company stocks compare in value with your individual stock? Why?
What are three ways for valuing corporate and government bonds? How do these ways differ from valuing individual company stock?
E.
Examine three differences between risk and risk aversion of your company. Explain which financial data you used for your answer.
Examine three differences between systematic and unsystematic risk for your company. Explain which financial data you used for your answer.
Explain the covariance and correlation and how they affect the risk of your company. Explain which financial data you used to find your answer.
Explain enterprise risk management (ERM) of your company. Explain which financial data you used to find your answer.
F.
Compare and contrast the operating and financial leverage of your company using three specific points.
Demonstrate the effects of correlation on the total risk of an investment portfolio using three specific points.
Calculate and provide an analysis of the VAR for your company. What does this tell you about your company in terms of risk?
G.
Compare the Dow Jones Industrial Average to a foreign stock market of your choice. How does it compare in terms of performance? Which would you choose to invest in and why?
Is your company’s stock attractive to foreign investors?
Which foreign-based company is in direct competition with your company? How is their stock performing? Which investors are more likely to choose to invest in and why?
What three global factors affect your company’s performance? Why?
H.
Is your company compliant with the laws and financial regulations? How do you know this to be true? Please be sure to use three specific points to justify your answer.
Provide a brief summary of the Trust Indenture Act of 1939 and the Securities Acts of 1933 and 1934. In your opinion, does your company comply with these legislations? How do you know this to be true? Please be sure to use three specific points to justify your answer.
Interpret the CFA of Ethics and Standards of Professional Conduct. In your opinion, does your company comply with this legislation? How do you know this to be true?
***Respond with a APA-formatted and citation-style paper.
***I would like to see sources other than additional textbooks that teach the same basic definitional and conceptual context, essentially repeating the same information as our course text. I expect professional and scholarly research, not reciting other academic textbooks.***
Parrino, R., Kidwell, D. S., Bates, T., & Gillan, S. L. (2021). Fundamentals of Corporate Finance, Enhanced eText (5th ed.). Wiley Global Education US. https://purdueuniversityglobal.vitalsource.com/books/9781119795384
