Each student will, as part of the course requirements, submit a research paper on an individual stock. You are allowed to select any stock that trades on the New York Stock Exchange (NYSE).
Final Paper:
Your final paper should meet the following criteria:
Structure: The paper should be 3 – 4 pages; however, substantial content will be weighted more than length. The content should be 12pt. Times Roman font.
Content: The paper must include the following 5 sections:
the background of the company with a life cycle analysis
an analysis of Return on Equity
the company''s projected future growth rate of earnings
an analysis of its required rate of return using the CAPM measurement
the company’s intrinsic value using the discount valuation techniques
Describe the competitive forces in the industry including the company''s relative advantages and disadvantages to its competitors and include a discussion on ROE as the basis for growth. This analysis should include demographic trends. DO NOT just state that "GE has grown at 10% in the past and will again in the future". You should tell why you think that GE can grow 10% (for instance, because you think its products will appeal to a certain demographic that is growing at X%). Given the outcome of your research and technical analysis, you will provide a buy or sell recommendation and estimated price target.