Determine the risk level of the company

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Reference no: EM13544056

Imagine that you are a financial manager researching investments for your client that align with itsinvestment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded companythat you may consider as an investment opportunity for your client. (Note: Please ensure that you areable to find enough information about this company in order to complete this assignment. You will createan appendix, in which you will insert related information.)

The assignment covers the following topics:

  • Rationale for choosing the company for which to invest
  • Ratio analysis
  • Stock price analysis
  • Recommendations

Write a ten to fifteen page paper in which you:

1. Provide a rationale for the U.S. publicly traded company that you selected, indicating thesignificant factors driving your decision as a financial manager.

2. Determine the profile of the investor for which this company may be a fit, relative to that potentialinvestor's investment strategy. Provide support for your rationale.

3. Select any five financial ratios that you have learned about in the text. Analyze the past three(3) years of the company's financial data, which you may obtain from the company's financialstatements. Determine the company's financial health. (Note: Suggested ratios include, but arenot limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)

4. Based on your financial review, determine the risk level of the company from your investor's pointof view. Indicate key strategies that you may use in order to minimize these perceived risks.

5. Provide your recommendations of this stock as an investment opportunity. Support your rationalewith resources, such as peer-reviewed articles or material from the Strayer Library.

6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and otherWebsites do not qualify as academic resources.

The specific course learning outcomes associated with this assignment are:

  • Critique financial management strategies that support business operations in various marketenvironments.
  • Analyze financial statements for key ratios, cash flow positions, and taxation effects.
  • Review fixed income strategies using time value of money concept, bond valuation methods, andinterest rate calculations.
  • Estimate the risk and return on financial investments.
  • Apply financial management options to corporate finance. FIN 534 - Assignments and Rubrics
  • Determine the cost of capital and how to maximize returns.
  • Formulate cash flow analysis for capital projects, including project risks and returns.
  • Evaluate how corporate valuation and forecasting affect financial management.
  • Analyze how capital structure decision-making practices impact financial management.
  • Use technology and information resources to research issues in financial management. Write clearly and concisely about financial management using proper writing mechanics.

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Reference no: EM13544056

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