FIN 424-001 INVESTMENTS PROJECT Assignment help

 

FIN 424-001

INVESTMENTS

SPRING 2019

SEMESTER PROJECT

 

The purpose of this assignment is to familiarize students with real life stock evaluations.

The students are asked to write a report based on their security analysis of any publicly available stock of their choice (using the methods which they learn on Chapter 7- Analyzing Common Stocks)

 

Step 1. Check the end of this document to find the company whose stock you will evaluate.

Step 2.  Start working on your report. The report should include the following:

  • Company Overview (general business description and mention if there is any key recent news affecting the company’s stock for e.g. change in management, introduction of new product line, merger and acquisition etc).
  • Economic Overview
  • Industry Overview (list the major competitors in the industry and a comparison with the major competitor- compare the ROA, ROE and P/E ratios)
  • Fundamental Analysis :
  • Liquidity analysis (Net working capital and current ratio)
  • Solvency analysis (debt to equity and times interest earned ratio)
  • Activity ratios (Accounts receivable turnover, inventory turnover, total assets turnover)
  • Profitability ratios (Net profit margin, ROA, ROE)
  • Valuation ratios (Price Earnings ratio , Market to Book ratio, dividend payout)

Here you could include a chart/ brief description of how well the stock was doing for the last period of time.

  • Conclusion (how well is the company doing, what to expect for the future, would you recommend investing in such company).

 

Step 3. Submit your project on blackboard on or before , 2019 (before 6 p.m.). The submissions will be closed after 6 p.m. on  Please submit a word or pdf document, not a pages document along with your excel worksheet of ratio calculations.

 

 

 

IMPORTANT INFORMATION

  • You can work in groups of maximum 3 No more than 3 students can form a group! Please make sure to allocate the work evenly across all group members, and write in your submission the contributions of each group member; if you have any “free riders” in the group, please inform me as soon as possible- not the last week!
  • Needless to say, no report should be in any ways similar to another student’s/group’s report. Any similarities will be considered as academic dishonesty and a violation of ZU Honor Code. The assignments will be scanned by “SafeAssign” and any indications of plagiarism will be taken seriously. Students must be prepared to accept the appropriate sanctions for any dishonest academic behavior. At the very minimum, your assignment will get a zero score.
  • You will be following the equations used in Chapter 7 of your textbook. You have to do the computations in an excel file and submit the written report and the excel file. In the report you are not expected to explain every single ratio or number. You will not only include the numerical results but also explanation of the trends. Therefore, it is better if you use graphs or charts in your report. What I expect is a brief interpretation of the important results (i.e. Does the company have good liquidity, is it increasing, what do you think is the reason behind increase in profitability etc.)

 

  • You will use 3 years of annual data to compute the ratios (the most recent years i.e at least 2017, 2016, 2015).

 

  • Include any relevant graphs and charts to make your report interesting!

 

  • Don’t forget when using the stock price (market value) in computations, use the one on the date you are computing the ratio. For example if you want to compute P/E ratio for Dec 31, 2017 then this is the date that you should use to get the stock price.

 

  • The due date for this assignment is no later than Submissions will be closed after the deadline and late submissions will not be accepted.

 

  • Each member of the group should submit the report on Blackboard (through Safeassign).

Note that, I value the way information is presented; which means that I would like to see neat, well‐organized, nice looking projects.

Papers will be graded on application of course content and organization of research information. Please note: ‘Late papers will not be accepted’.

 

 

 

 

GRADING RUBRIC

 

Grading criteria Marks allocated
Company overview 10
Economic Overview 10
Industry Overview  
Major competitors 2
Comparison with the major competitor 5
Graphs and charts 5
Fundamental Analysis (for all 3 years, if a year is missing, 2/3rd of the mark)  
Liquidity analysis (Working capital and current ratio) 6
Solvency analysis (debt to equity and times interest earned ratio) 6
Activity ratios (Accounts receivable turnover, inventory turnover, total assets turnover) 9
Profitability ratios (Net profit margin, ROA, ROE) 9
Valuation ratios (Price earnings ratio, market to book ratio, dividend payout) 9
Graphs and charts 9
Conclusion 10
Showing all calculations (submitting the excel file and showing calculations there) 5
Grammar and organization 5
   
TOTAL 100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Walt Disney Company
    Quaker Chemical Corporation
    Domino’s Pizza Inc
    FedEx Corporation
    Chevron Corporation
    Wal-Mart Stores, Inc.
    Coca-Cola Company
    Colgate-Palmolive Company
    Chevron Corporation
    Coca-Cola Company
    Coach, Inc.
    Macy’s Inc
    Harley-Davidson, Inc.
    Walt Disney Company
    Walt Disney Company
    Coca-Cola Company
    Delta Air Lines, Inc.
    Delta Air Lines, Inc.
    Pfizer, Inc.
    Delta Air Lines, Inc.
    Xerox Corporation
    Nike, Inc.
    CryoLife, Inc.