You need to prepare a Financial report for TESLA which includes all the details which is described in below.
Group Project:
Evaluate the latest annual reports of the following companies:
- Alphabet
- Amazon
- Tesla
- Microsoft
- BMW
- Coca Cola
- Nestlé
- Apple
The Objective
The aim of this assignment is to apply the theories and concepts that you learn during the classes. You are required to critically evaluate and analyze the financial statements, annual reports, etc. about the company of your choice to answer the following questions:
1. Briefly introduce the company and the types of the products that have, the sector of industry
2. What is the capital structure of these companies? What is the percentage of debt and equity? Calculate the WACC of the company.
3. Did the company issue any preferred stock or bond? If yes, explain why they did so and how much was the cost of borrowing. What is the bond rating of the company and how it has affected the cost of borrowing in the company?
4. Evaluate the stock prices of the company for the past 6 months and 1 year; Critically explain a few recent news or information that caused a change in the price (that is related to Efficient Market Hypothesis).
5. Select at least one competitor of the company in the same industry and critically evaluate the financial performance (e.g., P/E, total assets, total equity, total debt, sales, market share, net income, EPS, dividend, etc.) of the two.
6. What is the P/E ratio and EPS (both ttm and forward) of the company? What is the benchmark of the industry? Compare the P/E ratio of your selected company with those of competitors and the industry.
7. Had you invested in the company five years ago, how much would have been your return by today. Calculate both the HPR and Arithmetic Average return.
At the end of your presentation, you should advise your classmates on the decision to invest in that company. Your presentation therefore, must have a clear objective and you should summarize and address those objectives at the end by considering all the points mentioned above. Be critical of the decisions made by the company and/or investors in the past. You should work as if you are preparing a technical report for the investors of the company.