Investment Analysis Paper on Your Company Name Here
Your Name Here
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Investment Analysis Paper on Your Company Name Here
For seven weeks, you will be building this paper. Each week you will add a section and each week I will provide feedback. You will then incorporate my feedback and add a new section each week. In week seven, the paper will not only be a complete and thorough financial analysis, it might almost be perfect. In this document, I provide headings for you to follow. Use this introductory space to write a paragraph or two that presents basic business information (product, size, age, whatever) about your company.
It is an expectation of this assignment that you follow this template; the headings are provided to help you complete the assignment accurately. Remember that one paragraph of content is required between headings as a minimum and that a paragraph is a minimum of three sentences. Build you reference section each week and ensure that each reference is list in alphabetic order.
Board of Directors
Week one, select a publicly traded company that you wish to analyze for this paper. Submit the name to your Instructor for approval. Obtain the company’s financial statements (annual report) and the most recent proxy statement. Using the information on the proxy statement, provide a board of directors as the headings below suggest.
Monitoring Potential of the Firm’s Board of Directors
You will want to use level 2 headings within each weekly section.
Strengths and Weaknesses of Board Structure
Add your content here
Ethical Concerns
Add your content here
Competitive Financial Ratio Comparison
In week two, you will begin your analysis of the financial data. Remember to add this content to your week 1 paper; in other words, I will want to see that week 1s feedback has been incorporated and I will see the new week 2 content, too.
DuPont Identity
You will want to calculate the DuPont identity for your company and as many competitors as you want. This area will require a table or an appendix or both. Recommend a table or appendix that includes this information.
Table 1
Raw Data for XYZ Company
Company Name
Year __
Year __
Year __
Net income
Revenue
Information from
Assets
balance sheet
Equity
Repeat the above table for the competitor(s).
Use the following equation
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And another table that looks like this for the DuPont analysis.
Table 2
DuPont Analysis
ROE
Profit Margin
Asset Turnover
Equity Multiplier
Company
Year __
Year __
Year __
Competitor
Year __
Year __
Year __
Differences or Trends
Add your content here
Growth
In week three, you will analyze your companys growth using the growth model.
Dividend Growth Model
This section will require a table or appendix or both. Add a comment or two regarding your findings are they logical or feasible?
Table 3
Dividend and Stock Price Raw Data for Your Company
Company Name
Year _____
Net income
$
Equity
$
Total dividends paid
$
Outstanding shares
Earnings per share (EPS)
$
Dividends paid per share
$
Stock price as of ____
$
Table 4
Growth Rate for __________
Analysis
Formula
Year ___
ROE
Net income/ Equity
Retention ratio
1 (cash dividends/ net income)
Growth rate in earnings (g)
Retention ratio x ROE
Dividend Discount Model (DDM) = .0/msohtmlclip1/01/clip_image004.gif”> (2)
.0/msohtmlclip1/01/clip_image006.gif”> (3)
Issues with Using the Growth Model
Add your content here
Reasonableness of Constant Growth
Add your content here
Annual Report
Week four is the week you will read the annual report
Potential Real Options
Add your discussion here; are the options industry or company specific
Capital Budgeting Process
How would theses options affect your companys budgeting process?
Beta