Examine the concepts related to financial management, Financial Management

Assume you are a professional financial analyst working for a wealthy investor.  Your client has $2.6 million to invest and wants to sink it into a single stock (diversification is not in his vocabulary).  Your client would like to see two (2) companies you think are promising compared side-by-side, with a recommendation from you regarding which is the better investment choice (which should be supported by the numbers). In your analysis of the two (2) companies, be sure to include the following:

  • Company Overviews. Conduct research and describe the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three (3) years, fiscal or calendar (please insert these in an appendix to your paper). These financial statements must include at least the income statement and the balance sheet.
  • Evaluate the vulnerability of the company to external forces such as a recession, higher interest rates, and global competition.
  • Financial Performance. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.
  • Given the performance of the stock in the periods presented on the company's financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance.
  • Recommendations. State and support your opinion of each company' s common stock as an investment opportunity. Assume that you can choose only one (1) of these companies. State your choice and provide a solid defense for the company that you would choose.

Present your findings and recommendation to your client in a 7-9 page paper in which you:

1. Provide a detailed overview of two (2) U.S. publicly traded companies. This should be one to two (1-2) pages.

2. Evaluate the vulnerability of each company to external forces such as a recession, higher interest rates, and global competition.

3. Based on the financial trends of each company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.

4. Select five (5) financial ratios most appropriate to determining which of these two (2) companies would be a better investment. Perform a financial analysis and draw a conclusion to make this determination.

5. State and support your opinion of each company's common stock as an investment opportunity.  Assume that you can only pick one (1) of these companies. Provide a solid defense for the company that you would choose.

6. Cite at least five (5) quality references.

Your assignment must:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine the concepts related to financial management and the financial environment.
  • Evaluate different types of financing available in the marketplace and the related impact on firm value.
  • Use technology and information resources to research issues in corporate finance.
  • Write clearly and concisely about corporate finance using proper writing mechanics

 

Posted Date: 2/28/2013 3:14:21 AM | Location : United States







Related Discussions:- Examine the concepts related to financial management, Assignment Help, Ask Question on Examine the concepts related to financial management, Get Answer, Expert's Help, Examine the concepts related to financial management Discussions

Write discussion on Examine the concepts related to financial management
Your posts are moderated
Related Questions
The IASB is in the procedure of undertaking a comprehensive review of accounting for financial instruments, and has issued a latest financial instruments standard referred to as IF

Under write An arrangement under which the investment banks agree to purchase a certain amount of privacy of a new issue (typically an IPO) at a given date for a given pric

Assets Pension insurance companies' assets can be divided into five main investment classes: cash, long-term bonds, stocks, property and loans. The total returns on the assets


Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu

Explain about the debt policy Designing debt policy the debt policy of a firm is significantly influenced by the cost consideration. In designing financing policy, that is, p

Q. What is the rationale of the double-play strategy? The hedge funds deploy a double-play strategy in order to engineer steep increases in interest rates and steep declines in

Institutional Clearing Member (ICM) A Financial Institution has to subscribe to at least 100 equity shares of Rs.10,000 each to become an Institutional Clearing Member of COFEI

(a).At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? (b).b. A

Role of market efficiency: Market efficiency signifies how ‘quickly and accurately' does relevant information have its effect on the asset prices. Depending upon the degree of