Examine the concepts related to financial management, Financial Management

Assignment Help:

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

 


Related Discussions:- Examine the concepts related to financial management

Define the process of wealth maximisation, Define the process of Wealth Max...

Define the process of Wealth Maximisation Shareholders' wealth can be defined as total market value of all the equity shares of company. So when we talk about maximising wealth

Measuring interest rate risk , Investors are always interested in est...

Investors are always interested in estimating the price sensitivity of a bond to change in market interest rates. Let us study how prices change both in terms of

Define factors for investing in the emerging stock market, As an investor, ...

As an investor, what factors would you consider before investing in the emerging stock market of a developing country? Answer:  An investor in emerging market stocks requirements

What is the basic approach of the financial management, Q. What is the basi...

Q. What is the basic Approach of the financial management ? 1) The first approach view finance as to providing the funds needed by a business on the most suitable terms. This ap

Long-term debt, Long- T er m Debt Long-term debt is a deb...

Long- T er m Debt Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation com

Find the minimum annual savings, Baldwin Company is interested in buying a ...

Baldwin Company is interested in buying a new corporate jet for $6 million. It will depreciate the jet fully in 5 years and then sell it for $5 million. The jet will use $60,000 in

What do you mean by treasury bills, Q. What do you mean by Treasury Bills? ...

Q. What do you mean by Treasury Bills? Treasury bills (TBs) are short-term government securities. The usual practice in India is to sell treasury bills at a discount and redeem

Benefits of conducting a cost and benefit analysis, Question 1: i) What...

Question 1: i) What is meant by Cost and Benefit Analysis? Illustrate your answer with the use of empirical and hypothetical examples. ii) What are the benefits of conductin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd