Ask Financial Accounting Expert

Components:

Project contains activities like:

1. Conduct secondary research (like library, internet, etc)

2. prepare research paper calculating the financial ratios yourself.

The Project to be addressed by the Paper:

You have recently graduated from Keiser University’s MBA program and have secured a position as the fund manager for a renowned investment banking house.  You have been provided $300 million to manage/invest. Fund is a pension/retirement fund so its perspective is long term with moderate risk of loss of capital and a needed return of 9% per annum. In order to reduce investment risk you are instructed to make 12 investments of $25 million dollars each. Your first assignment is to find out whether the fund you are managing must invest $25 million dollars in the stock of the company you have selected for your first analysis/investment decision.

Your analysis, based on concepts covered in this course, would address each of the following:

1. Business Strategy Analysis: Develop the understanding of the business and competitive strategies of acompany. Which of the three generic competitive   strategies does it use (low cost provider, differentiation, or focus)?  This must be covered in not more than three paragraphs. Don’t spend time writing a history of the company.

2. Accounting Analysis: Perform the accounting practices accepted by the company usually reflect an correct picture of the economic performance of the company? Did your research find any public announcements of restatement of earnings or other financial statements that will point out that financial statements might be of dubious value?  This could be done by reviewing the company's 8K filings with the SEC.  These filings could usually be found on the company's website under Investor Relations - SEC filings.

3. Financial Analysis:  Analyze financial ratios and cash flow measures of the company relative to its historical performance. 

4. Prospective Analysis:  Develop forecasted performance measures and list the assumptions associated with your forecast.  List your assumptions and reasons for your forecast.  You might also quote the works of other analysts who have published forecasted earnings for the time frame you are addressing.  (Hint:  take a look at Yahoo/finance - analysts opinion

5. Conclusion: Will you or will you not invest $25 million in this particular Company?  Support the conclusion?  Remember a negative conclusion is just as valid and valuable as a positive conclusion.

Conducting Library Research:

1. Participate in a research orientation offered by the graduate librarian.

2. Conduct a search for sources which offer correct information on your company. A minimum of six legitimate and valid related resources are needed.

3. Avoid general Internet key word searches.  Wikipedia and other illegal sources are not suitable for graduate work.  Articles noting up to date information is such sources as The Wall Street Journal, Barron’s or Business Week might be useful in addressing the suitability of present strategies, resource pricing, etc.  given market conditions or status of competitors.

Writing the Paper:

Following are general guidelines for format and organization.

1. Format:

a. Minimum of ten pages (including self prepared exhibits), with numbered  pages.  No binders please.

b. Typed, double spaced.

c. New Times Roman (i.e. business) font, 12 point.

d. Margins – 1.25 inches.

e. Include boldface headings and subheadings.

f. Note source citations as suitable under APA guideline.

2. Organization:

a. Cover page

b. Introduction – A brief statement of the purpose of the paper and  explanation of its organization.  You are welcome to use pseudonyms for the name of the company or individuals addressed in the paper.

c. Analysis -Address four concepts noted in “The Paper etc” on the preceding page.

d. Summary – A brief statement combining the finding arising from the analysis.

e. Conclusion/Recommendations – should you invest or not invest the $25 million and why or why not.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91642

Have any Question?


Related Questions in Financial Accounting

Case study - the athletes storerequiredonce you have read

Case Study - The Athletes Store Required: Once you have read through the assignment complete the following tasks in order and produce the following reports Part 1 i. Enter the business information including name, address ...

Scenario assume that a manufacturing company usually pays a

Scenario: Assume that a manufacturing company usually pays a waste company (by the pound to haul away manufacturing waste. Recently, a landfill gas company offered to buy a small portion of the waste for cash, saving the ...

Lease classification considering firm guidance issues

Lease Classification, Considering Firm Guidance (Issues Memo) Facts: Tech Startup Inc. ("Lessee") is entering into a contract with Developer Inc. ("Landlord") to rent Landlord's newly constructed office building located ...

A review of the ledger of oriole company at december 31

A review of the ledger of Oriole Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $19,404. The company has separate insurance policies on i ...

Chelsea is expected to pay an annual dividend of 126 a

Chelsea is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth 2.6 percent. What is the cost of equity?

Sweet treats common stock is currently priced at 3672 a

Sweet treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. The dividends have been increasing by 2,2 percent annually and are expected to continue doing ...

Highway express has paid annual dividends of 132 133 138

Highway Express has paid annual dividends of $1.32, $1.33, $1.38, $1.40, and $1.42 over the past five years, respectively. What is the average divided growth rate?

An investment offers 6800 per year with the first payment

An investment offers $6,800 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years?  b. What would the value ...

Oil services corp reports the following eps data in its

Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1 ...

At the start of 2013 shasta corporation has 15000

At the start of 2013, Shasta Corporation has 15,000 outstanding shares of preferred stock, each with a $60 par value and a cumulative 7% annual dividend. The company also has 28,000 shares of common stock outstanding wit ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As