The students have to complete an individual financial research project. The purpose of this assignment is to test the students’ ability to research, analyze and present financial information. The students will be required to research key financial data, analyze the information, apply the appropriate financial concepts and formulas and prepare a credible management level financial report.
The specific objective of this graded written research exercise is to prepare an “executive level financial report” to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst. This report will pertain to the financial evaluation of a real, publicly-traded, company. It will require independent research (web-based or library), careful financial analysis, and the proper application of key financial theories and formulas.
a. identification of the company by ticker symbol and name
b. a reasonable and appropriate explanation of why you want to examine the alternative company
c. the source or source links of the analyst’s report that will be used in the analysis (which must be included in the Reference page of your paper)
d. acknowledgement by you that all of the specific elements of the assignment will be prepared by you and included in the final research project report
All works must be Word processed and formatted according to APA standards. Handwritten and scanned work will not be accepted and graded.
This report is an individual effort and must be researched, developed and prepared by you. All questions related to this assignment, should be referred to the mythical CFO (i.e., your instructor).
An evaluation rubric is available for the research project. The evaluation rubric outlines the specific requirements and elements of the project. It is suggested that the rubric be used as a guideline for the content, preparation, and completion of the project.
The rubric will be used for the evaluation and grading of the final research project.
1. Financial statements analysis of the assigned company (15%) – Excellent and very thorough development and articulation of financial statements analysis of the assigned company.
2. Financial ratio trend analysis of the assigned company and industry comparatives. (15%) – Excellent and successful effort to implement financial ratio trends analysis of the assigned company and industry comparatives; very clear linkages between financial retio results and investment decisions and recommendations.
3. DuPont analysis of the assigned company. Compare with main competitor. (10%) – Excellent and successful effort to implement DuPont analysis of the assigned company very clear linkages between DuPont analysis and investment decisions and recommendations.
4. Other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, etc. (10%) – Outstanding effort to to analyze other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations.
5. The evaluation of the assigned company’s stock performance for the last year. (20%) – Excellent and accurate evaluation of the assigned company’s stock performance for the last year; very clear linkages between stock performance results and investment decisions and recommendations.
6. The student developed specific recommendation, with supporting rationale, as to whether or not the assigned company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment. (15%) – Outstanding and very thorough effort to explain relationships the assigned company’s recent trend in financial and stock performance. The results are sufficient to warrant entering into a long-term commitment.
7. Organization, Format and Presentation of Paper including Introduction, Body, and Summary (4%) – Paper is extremely neat and has no blemishes; its organization is outstanding and very easily followed.
8. Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper (3%) – Tables, figures and other graphics are very descriptive and provide exceptionally strong support for the paper; there are no errors in labels or in the numbering sequence.
9. Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report (3%) – Very effective transitions are used throughout the written analysis.
10. Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology, use of double spaced, with one-inch margins, and use 12-point Times New Roman font. (5%) – Excellent and successful effort to identify and use appropriate and professional research sources including Library Search Engines, Websites, S&P, SEC, stock exchanges, Morningstar, NYSE, Competitors, 10K Report, analyst reports, news releases, articles, etc.; appropriate and accurate documentation.