Each student will study a firm within the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotations System (NASDAQ). Each individual will be responsible for creating a 10-page (maximum) report detailingthe past, present, and future aspects of their firm. The typed report should include charts with graphs when useful and all references are to be cited using APA style. The cover page, works cited page, and appendices do not count toward the 5-page maximum. Each student should utilize the company's web site, books and articles related to the company, and internet resources with company information in preparing their report. The course homepage provides a link to internet resources. Each report should include the following information:
- The company’s primary line of business
- The organization’s main competitors. How does your organization compete with the others in the market?
- A financial ratios chart for the company that compares the company’s ratios to its nearest competitor(s) and industry average.
- A 12-month closing price graph and a table of monthly stock prices for the company compared with the S&P 500. In addition, an estimate of beta for the company should be calculated. Create the graph in Excel.
- A bond valuation for your company's outstanding bond with the longest/farthest maturity date (i.e. find the present value of the bond if the market was now yielding 7.5% on bonds and compare that price to the current price. Remember that the PV(bond) = PV(annuity of coupon payment) + PV(final payment of principal)
- A stock valuation for your company with a comparison to the actual price. Use the dividend valuation model to estimate the price of your company’s stock and compare it to the current actual price.
- An assessment of the risk(s) that investors would face if they were to invest in your company's securities.
- Are there any biblical principles at play within your organization, or are there any biblical financial principles that you could suggest that they incorporate into the organization?
Project grades will be based on the level and quality of research conducted on the company, accuracy of the information, knowledge of the subject matter, and creativity and professional look of the report. The final finance project is worth 20% of your overall grade for the course.