Each student will analyze the stock and bond of the already-selected company using the company's most recent Annual Report and/or 10K report (and other reports as desired) and other resources, prepare 2 to 3 page (excluding tables and/or graphs) analysis paper based on the chapters covered in class. This assignment is due during Session Five. APA format required.
Stocks: Students analyze the stock price based on the methods discussed in the chapters.
Bonds: Students analyze the amount of bonds issued by the company and discuss if the amount is too much and, if so, also discuss solutions. Also need to calculate financial leverage and discuss.
This analysis to measure company's fair stock price, and financial leverage.
Title including Company name
Analysis
- Bond & Stock Analysis (Section 2)
• Bond: Analyze company's debt only using it's bonds (short-term and long-term debt). You need to research the company's credit rating and measure it's approximate interest rate. You need to be creative in analyzing this area. For example, you can analyze how your company's debt burden is or the interest payment is too much for it's sales and so on.
• Stock: Analyze the company's stock using it's current market price, book price and forecasted price. You need to estimate fair price of the stock based on financial statements and forecasted price introduced in the textbook(you will need to find it in the textbook). Your decision here will be determining the right price of the stock. You should not use any other technical analysis(graph or regression model) that is out of the scope.
• For both of the analyses, you can bring some of the ratio analysis or you can create your own ratio test. You can evn use numbers in the financial statements.
Conclusion (1.5 to 2 pages)
• Address summarized analysis
• Implication of the study
• Biblical integration should be applied
Citation
• References used in the study.