Essentials of Finance

Essentials of Finance

Prior to beginning work on this final presentation,

• Read Chapter 9 Section 9.1: Perfect Capital Markets in the Essentials of Finance (2nd ed.) textbook. (attached)
• Read Chapters 10 and 11 in the Essentials of Finance (2nd ed.) textbook. (attached)

Reflect

Throughout this course, you have analyzed many different components of a publicly traded company’s financial performance. You have learned about each of the four main factors that impact value, time, cash, risk, and opportunity cost. Ultimately, when purchasing a company\’s stock, the investor is purchasing the company\’s future performance. In this project, you should consider how the company’s past performance may inform your expectations about its future performance and risks, while keeping in mind that the past is not a guarantee of the future.

Write

In your final presentation,

• Introduction, including the following:
  • The name of the company and a brief description of what it does.
  • The current market price per share and total market capitalization of the company.
• Explain the company’s financial performance based on its income statement.
  • Common Size, Growth
• Explain the company’s financial performance based on its balance sheet.
  • Common Size, Growth
• Describe the company’s ratio performance.
• Compare the company’s financial and ratio performance to the industry.
• Explain the company’s cash flow performance.
  • State trends in operating, investing, and financing cash flow
  • Describe the company’s simple cash flow
• Risk
  • Explain the three types of risk, the benefits of diversification, beta, and how these concepts relate to a company’s required rate of return.
  • Identify the company’s beta and explain its meaning based on risk relative to the market portfolio.
• Capital Asset Pricing Model
  • Include your calculation of the required rate of return based on the capital asset pricing model (from Week 5 Discussion Forum)
• Comparison of Returns
  • Compare your company’s required rate of return (based on the CAPM) to the historical returns of large-cap and small-cap companies.
• Categorize the overall financial performance as strong, neutral, or weak.
• Justify your categorization based on the company’s financial performance
• Conclusion
  • State your investment recommendation of “buy” or “do not buy” for your chosen company.
  • Summarize the key financial considerations that support your investment recommendation.

Format

• The Investment Decision final presentation
  • must be 8 to 10 double-spaced slides in length.
  • must include a separate title slide with the following in title case:
    • title of project in bold font
      • Space should appear between the title and the rest of the information on the title page.
    • student’s name
    • name of institution (The University of Arizona Global Campus)
    • course name and number
    • instructor’s name
    • due date
  • must utilize academic voice.

Requirements: clear

Answer preview to Essentials of Finance

APA

2400 WORDS

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