Construct an argument in favor of investing

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Reference no: EM131245739

Prepare a comprehensive financial analysis and proposal that will demonstrate your understanding of key financial concepts, strategies, and practices. After selecting a company to profile, you will construct a comparative financial analysis of your selected company's financial position with that of a prime competitor, for example, Amazon and Netflix, Microsoft and Oracle, or Bank of America and JPMorgan Chase & Co.

Company Selected: DISH Competitor: AT&T

For this assignment, apply the these steps: (i.e., Step 5: External Financing Need, Step 6: Target Sources of Finance, and Step 7: Viability of 3-5 Year Plan) to compose further assessment of the company/competitor pairing analysis as below:

1. Current financial plan. Interpret current equity valuations in order to recommend strategic solutions regarding future financial goals. Consider how stock splits and stock dividend allocations can impact the plan.

2. Future external financing needs. To support growth, companies need capital, and external financial needs are vital any firm's future success. Describe external financing needs sufficient to support your ongoing analytical assumptions and pro forma financial statements for your chosen company and competitor.

3. Access to target sources of external financing. You will need to consider the amount of financing, timing, length of time required, and deferability of financing options.

4. Viability of a 3-5 Year Plan. Assess the consistency of the plan with the firm's goals, and the achievability of both the operating plan and the financing plan you are proposing.

Apply the final two steps (i.e., Step 8: Stress Testing and Step 9: Financing and Operating Plan for Current Year) to compose further assessment of the company/competitor pairing analysis as below:

1. Perform stress testing under scenarios of likely adversity and value your firm using appropriate valuation techniques on the pro forma financial data analysis you constructed earlier in the course.

2. Compare your results from step #1 against the current stock price of your chosen company and competitor. Construct an argument in favor of investing in either the chosen company, or the competitor, with sufficient supportive detail and/or data to make your case.

Reference no: EM131245739

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