Imagine that you are a financial manager researching investments for your client. Research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your clientâ€™s investment goals.
The assignment covers the following topics:
- Rationale for choosing the company for which to invest
- Ratio analysis
- Stock price analysis
Write a ten to fifteen (10-15) page paper in which you:
- Provide a rationale for the stock that you selected, indicating the significant economic, financial, and other factors that led you to consider this stock.
- Suggest the primary reasons why the selected stock is a suitable investment for your client. Include a description of your clientâ€™s profile.
- Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the selected financial ratios for the company; you may obtain this information from the companyâ€™s financial statements. Determine the companyâ€™s financial health. (Note: Suggested ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)
- Based on your financial review, determine the risk level of the stock from your investorâ€™s point of view. Indicate key strategies that you may use in order to minimize these perceived risks.
- Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, and reviews by market analysts.
- Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.
The specific course learning outcomes associated with this assignment are:
- Critique financial management strategies that support business operations in various market environments.
- Analyze financial statements for key ratios, cash flow positions, and taxation effects.
- Review fixed income strategies using time value of money concept, bond valuation methods, and interest rate calculations.
- Estimate the risk and return on financial investments.
- Apply financial management options to corporate finance.
- Determine the cost of capital and how to maximize returns.
- Formulate cash flow analysis for capital projects including project risks and returns.
- Evaluate how corporate valuation and forecasting affect financial management.
- Analyze how capital structure decision-making practices impact financial management.
- Use technology and information resources to research issues in financial management.
- Write clearly and concisely about financial management using proper writing mechanics.
Include a description of your clientâ€™s profile means:
In summary, client’s profile is creating the background of your client. For example, your client is Cash who is an entrepreneur with a successful business and has a great education and investment portfolio but is skeptical on investment decision due to the financial crash and previous bad investment outcomes. Therefore, since Cash is your client, you should be able to convince Cash to invest in the stock that you have chosen. Since you are familiar with Cashâ€™s history or background from what you will describe, you should be able to advise your client, Cash, on investment strategies. In other words, you are setting the stage for your client, whose name is Cash such as being smart, successful, rich, poor, young, at retirement age, afraid to invest, love investment, or whatever description your choose, etc. Based on your clientâ€™s background, suggest the primary reasons why the selected stock (which is the company that you will choose such as Apple, etc.) is a suitable investment for your client. This is just an idea for you to set up your clientâ€™s profile.
(Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.)
For the Appendix:
In the research report, at the bottom of your paper, include the Appendix which may consist of the Balance Sheet, Income Statement, Owners Equity and Statement of Cash Flows or information from item #3. Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the selected financial ratios for the company; you may obtain this information from the companyâ€™s financial statements that you have researched the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client.
The appendix, cover page, and the reference page are not included in the required assignment page length of ten to fifteen (10-15) page.