Final Project Guidelines and Rubric Final Project Part I Part I Overview Business professionals typically need to demonstrate a core set of financial knowledge to earn the job and to succeed on a job.

For this part of the assessment, you will be given a scenario in which you are asked to illustrate your financial management knowledge. This part of the final project addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements

Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments Part I Prompt You have completed an internship in the finance division of a fast-growing information technology corporation.

Your boss, the financial manager, is considering hiring you for a full-time job. He first wants to evaluate your financial knowledge and has provided you with a short examination. When composing your answers to this employment examination, ensure that they are cohesive and read like a short essay.

Your submission must address the following critical elements:

I. Analyze Roles and Responsibilities for Compliance

A. Examine the types of decisions financial managers make. How are these decisions related to the primary objective of financial managers?

B. Analyze the various ethical issues a financial manager could potentially face and how these could be handled.

C. Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?

II. Investment Options A. If a private company is "going public," what does this mean, and how would the company do this? What are the advantages of doing this? Do you see any disadvantages? If so, what are they? B. How do the largest U.S. stock markets differ? Out of those choices, which would be the smartest private investment option, in your opinion? Why? C. Compare and contrast the various investment products that are available and the types of institutions that sell them. 

Examines the types of decisions financial managers make, including how these decisions are related to their primary objective, but examination is not comprehensive Does not examine the types of decisions financial managers make

15.83 Roles and Responsibilities:

Analyze Meets "Proficient" criteria, and analysis indicates a clear understanding of ethical standards in finance Comprehensively analyzes the various ethical issues a financial manager could potentially face and how these issues could be handled

Analyzes the various ethical issues a financial manager could potentially face and how these issues could be handled, but analysis is not comprehensive Does not analyze the various ethical issues a financial manager could potentially face and how these issues could be handled

15.83 Roles and Responsibilities:

Compare and Contrast Meets "Proficient" criteria, and analysis indicates a clear understanding of federal safeguards in finance Accurately analyzes different federal safeguards that are in place to reduce financial reporting abuse, including why these safeguards are appropriate

Analyzes different federal safeguards that are in place to reduce financial reporting abuse, but analysis is inaccurate or cursory, or analysis of why these safeguards are appropriate is inaccurate or cursory Does not analyze different federal safeguards

15.83 Investment: Private Company Meets "Proficient" criteria and includes examples in analysis

Comprehensively compares and contrasts the advantages and disadvantages of a company "going public" versus staying private Compares and contrasts the advantages and disadvantages of a company "going public" versus staying private, but analysis is not comprehensive Does not compare and contrast the advantages and disadvantages of a company "going public" versus staying private

15.83 Investment: U.S. Stock Markets Meets "Proficient" criteria and explains choice of smartest stock market to invest private money into Comprehensively and accurately differentiates between the largest U.S. stock markets and indicates choice of smartest stock market to invest private money into Differentiates between the largest U.S. stock markets, but analysis is inaccurate or cursory or is missing choice of smartest stock market to invest private money into Does not differentiate between the largest U.S. stock markets 15.83 Investment:

Compare and Contrast Meets "Proficient" criteria and includes both foreign and domestic institutions Comprehensively compares and contrasts the various investment products available and the types of institutions that sell them Compares and contrasts the various investment products and the types of institutions that sell them, but analysis is not comprehensive Does not compare and contrast the various investment products and the types of institutions that sell them

15.83 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

5.02 Earned Total 100% Final Project Part II Part II Overview For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills. This part of the assessment addresses the following course outcomes:

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success

Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part II Prompt

For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU thinkorswim portfolio. The second needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies' financial data, you will then decide which company's stock is the better investment. This section of your employment examination must be submitted in two parts.

Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation-for example, "rate of return is 3.570 USD (E64, WB2)," where E64 is the cell that the calculation took place in and WB2 is designating "workbook

2." This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations. Your submission must address the following critical elements:

I. Preparing the Workbooks

A. Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosen companies. This information must be included in your final submission.

B. Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission.

C. Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use. II. Three-Year Returns A. What is the three-year return on the stock price of the first company (Company A)?

How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company's stock price. B. What is the three-year return on the stock price of the second company (Company B)?

How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company's stock price. C. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies?

III. Financial Calculations

A. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return on assets for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies.

Be sure that you are entering and using the correct formula.

F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies.

Be sure that you are entering and using the correct formula.

IV. Industry Averages

A. Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data.

B. In this context, how is each company's financial health? How do these two companies compare to one another? Consider the appropriate date range you should use.

V. Performance Over Time

A. Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

B. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

C. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier.

VI. Investment

A. Are the companies considered growth or value companies? Why?

B. Which company's stock is the better investment? Consider supporting your answer with data.

This includes going beyond the number crunching and reading graphs in order to analyze various financial indicators. This analysis can lead to many important decisions in your financial career.

For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial knowledge and analysis skills.

This part of the assessment addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements

Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success

Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part III Prompt

The results of both sections of your employment examination have finally been received, and you were offered the position.

You have a few important decisions to make before you can formally accept or decline the position. When composing your answers to these decisions, ensure that they are cohesive and read like a short essay. Your submission must address the following critical elements:

I. School Versus Work

A. The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.

B. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.

C. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

D. Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data.

II. Bonus Versus Stock

A. The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company's stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

B. What are the advantages and disadvantages of each option? Be sure to support your answers.

C. What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

III. Compliance

A. While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder? Be sure to reference any applicable statutes or laws.

B. You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?