Project on investment banking house, Financial Management

The Project to be Addressed by the Paper:

You have just graduated from CCI's MBA program and have secured a position as a fund manager for a well known investment banking house.  You have been given $300 million to manage/invest. The fund is a pension/retirement fund so its perspective is long term with moderate risk of loss of capital and a required return of 9% per annum. In order to reduce the investment risk, you are instructed to make 12 investments of $25 million dollars each. Your first assignment is to determine if the fund you are managing should invest $25 million dollars in the stock of the company you have selected for your first analysis/investment decision.  Your decision to invest or not invest will be supported by the research paper.

Your analysis, based on the concepts covered in this course, will address each of the following:

1. Business Strategy Analysis:  Develop an understanding of the business and competitive strategies of the company. Which of the three generic competitive strategies does it utilize (low cost provider, differentiation, or focus)?  This should be covered in not more than three paragraphs.  Do not spend time writing a history of the company.  This is an analysis, not a history lesson.

2. Accounting Analysis:  Do the accounting practices adopted by the company generally reflect an accurate picture of the economic performance of the company? Did your research find any public announcements of restatement of earnings or other financial statements that would indicate that the financial statements may be of dubious value?  This can be done by reviewing the company's 8K filings with the SEC (a mandatory requirement for this paper).  These filings can generally be found on the company's website under Investor Relations - SEC filings.

3.  Financial Analysis:  Analyze financial ratios and cash flow measures of the company  relative to its historical performance.  For purposes of this research paper, a two-year look back is sufficient and required. You must use at least 10 of the ratios noted on pages 48-58 (summarized on Table 3.6 on page 57 of your textbook), including all four of the profitability ratios.

4. Prospective Analysis:  Develop forecasted performance measures and list the assumptions associated with your forecast.  List your assumptions and reasons for your forecast.  You may also cite the works of other analysts who have published forecasted earnings for the time frame you are addressing.  (Hint: take a look at Yahoo/finance - analysts opinion.)

5. Conclusion: Will you or will you not invest $25 million in this particular Company?  Support your conclusion?  Remember a negative conclusion is just as valid and valuable as a positive conclusion. 

Posted Date: 2/16/2013 2:35:20 AM | Location : United States







Related Discussions:- Project on investment banking house, Assignment Help, Ask Question on Project on investment banking house, Get Answer, Expert's Help, Project on investment banking house Discussions

Write discussion on Project on investment banking house
Your posts are moderated
Related Questions
Trade credit is free credit.  Do you agree or disagree with this statement?  Explain. No the Trade credit is not free.  It comprises a cost.  Who bears that cost relies on the te

Joe and Sam each invested $20,000 in the stock market. Joe's investment increased in value by 5% per year for 10 years. Sam's investment decreased in value by 5% for 5 years and th

The term 'Eurobonds' refers to bonds issued and sold outside the home country of the currency. For example, a dollar denominated bond issued in the UK is a Euro (

Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. If exchange rates are fluctuating very frequently, that may

It's a small amount of money which is used for initial market research or product development for a new venture.

what role do core deposits play in predicting the probability distribution of net deposit drains

#pseudocode for finance class ..

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

Compare and contrast the book value and liquidation value per share for common stock. Is one method more reliable? Explain. The Book Value of a firm's common stock is institute

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for