Reference no: EM13874617
You have just graduated from an MBA program and have secured a position as a fund manager for JPMorgan Smart Retirement Income Fund (JSRAX). You have been given $300 million to invest. The fund is a retirement fund so its perspective is long term with moderate risk of loss of capital and a required return of 9% annually. 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 stocks of Vanguard Target Retirement Income (VTINX) for your first investment decision.
The analysis, must address each of the following:
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)?
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?
Review the company's 8K filings with the SEC
Financial Analysis: Analyze financial ratios and cash flow measures of the company relative to its historical performance. A 2 year look back is sufficient and required.
Prospective Analysis: Develop forecasted performance measures and list the assumptions associated with your forecast. List your assumptions and reasons for your forecast.
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.
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