Financial Management Homework
The student will turn in a hard copy which is to be five to seven pages. Please submit the paper thru canvas (word document) at the end of week 16 (Sunday at 1159pm central time of week 16).
The student is to choose the stock of a publicly held company, and ultimately recommend or not recommend the company. There are really two parts to this assignment, a qualitative analysis and a quantitative analysis.
The qualitative analysis deals with the product, the market for the product, the competition, the direction of the company, etc…
The quantitative side of the project deals with financial ratios, cash flow, earnings, etc… As part of the quantitative analysis the student should choose a minimum of four financial ratios and compare them to the companies key competitor, or the industry average. You may use net profit margin (net income/revenue), ROA, ROE, Debt/Equity. If you prefer, you may choose other ratios or numbers for comparison purposes.
There is an abundance of information available online. You can use cnnmoney.com, (enter a stock symbol, then click on financials), yahoo finance (enter a stock symbol, then click on financials), CNBC.com (enter a stock symbol, then click financials), aol finance , or another source of your choice. Searching for the relevant information is part of the learning process.
The instructor will look for accuracy and logic in both the qualitative and the quantitative parts of the paper.
Please note the following, which is what the instructor is really looking for:
1. Choose a stock that is publicly held (every publicly held stock has a stock symbol).
2. The length of the paper is 5-7 pages, typed and double spaced (you can include a chart if you’d like showing the numbers and the comparison to the peer, and this counts as a page (or part of a page). Only submit the paper (do NOT submit a power point presentation as your paper).
3. Submit the paper on time. This is critical. I suggest that you NOT wait until Sunday night.
4.Qualitative analysis (background information on the company is important).
5. Quantitative analysis (a. identifying and reporting four applicable ratios for comparison, b. choosing an appropriate peer and comparing the peer’s ratios to those of your company, c. interpretation of the comparison).
6. Conclusion (do you like the stock, hate the stock, or are you indifferent? and why?)