A research project on a U.S. firm

by | Sep 20, 2021 | Homework Help

Students will complete a research project on a U.S. firm on the  S&P 500.  You may chose the firm,  however, do not research the following firms:  Starbucks, Google, Amazon, Apple, Netflix, Facebook, Walmart, or Tesla.1.  The project will include written (typed) information (10 to 15 pages) and spreadsheets using excel.  (Double-spaced).The project shall include:Brief introduction of the company A financial analysis, including current position.o  Debt ratios, Profit margins, ROE, EPS, P/E ratios, etc.A modified income statement  (most current)          (use excel) A modified balance sheet  (most current)                 (use excel) Cost of Capital (WACC) Overall Valuation of the firm . USE an excel file similar to examples in the text book. Historical stock price (graph)  PLEASE INCLUDE THIS GRAPH Summary and projected financial status 5 years from now*    (use excel)Keep the financial statements simple!  (Just use key line items, and make estimations).* The projection will take some analysis on your part – what is the current financial status of the company?  (Too much debt, not enough sales, excessive costs, excellent growth rate, etc).  What are the projected revenues?  Projected costs? New products?  (Expansion possibilities)?  .  What will economic conditions be like 5 years out? etc. Estimate the Cost of capital.  This can be used to assist in valuing the firm.Ensure you explain your reasoning for the projected position.   Discuss the firm’s valuation; does it seem to be valued correctly?  And, include in your recommendation; would you buy stock in this company if you were planning to hold onto it for 5 years?  In other words, what price do you expect the stock will be in 5 years?Again, this will take some financial analysis on your part.   Use cost of capital and capital structure information and valuation techniques learned in this class.Be creative.  Make your own assumptions based on logic (and let me know what your major assumptions are).Recommend using the firm’s 10K report for your initial research.

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