Analyzing the Performance of the Stocks Assignment
Order ID 53003233773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Analyzing the Performance of the Stocks Assignment
This is your second interview with a prestigious brokerage firm for a job as an equity analyst. You survived the morning interviews with the department manager and the vice president of equity. Everything has gone so well that they want to test your ability as an analyst.
You are seated in a room with a computer and a list with the names of two companies – Ford (stock symbol F) and Microsoft (stock symbol MSFT) and are asked to do the following analysis including computing stock ratios for F and MSFT, comparing and contrasting those ratios, and analyzing the performance of the stocks versus the industry averages.
Complete the following tasks and write a five- to six-page report on your findings, including the analysis in Questions 2 and 3 below.
- Compute ratios by following the below directions:
- Navigate to Morningstar (http://www.morningstar.com/ ). In the Quote box at the top of the page, enter each stock symbol, choose your companies, and click on the Financials tab. You will see underneath the Financials tab the three financial statements (Income Statement, Balance Sheet, and Cash Flow). An Export button is to the far right. Download the income statement and balance sheet financial statements for each company.
- Next, you will need historical data for each stock. Navigate to Yahoo! Finance (https://finance.yahoo.com/ ), enter each stock symbol, click on Historical Data, and select ending date of the most recent full reported year (for example, if the income statement ending is December 2016, select December 30 to 31, 2016).
Note the company’s stock closing price for the last day of the financial statement reporting period you will use for this assignment. To determine each organization’s market capitalization at the closing date of the most recent annual statements you downloaded from Morningstar, multiply the number of shares outstanding by the stock price you obtained from Yahoo! Finance.
Use the number of shares outstanding by using Basic under Weighted Average Shares Outstanding on the income statement you downloaded from Morningstar (remember, the share value will be in millions of shares, so make the adjustment by adding 0s).
- Compute the following ratios for F and MSFT (refer back to Week 1) for the most recent year of financial statements downloaded from Morningstar:
. Price-earnings ratio (for EPS, use diluted EPS total)
. Market-to-book ratio (aka price-to-book ratio)
. Operating margin
. Net profit margin
. Return on equity
. Current ratio
. Quick ratio
. Debt-to-equity (for debt, use long-term debt)
- Obtain industry averages for each company by going to Reuters (http://www.reuters.com/finance/markets ). Click the magnifying glass search icon, enter each company’s name, click on Companies, select each company, and then the Financials tab. Scroll down under Valuation Ratios and each ratio you calculated to the industry (ignore the current company ratios as these are not the same as you calculated).
- Analyze the performance of each firm versus the industry, and comment on what you find in terms of strengths and weaknesses.
- Compare and contrast the ratios for F and MSFT.
- What might explain the differences between them?
- Would you recommend investors buy, hold, or sell F and MSFT, based on your analysis?
Your assignment must follow these formatting requirements:
- This course requires the use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
- Typed, double spaced, Times New Roman font (size 12), one-inch margins on all sides, SWS format.
- Use headers for each of the subjects being covered, followed by your response.
- In addition to the four to five pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date.
The specific course learning outcomes associated with this assignment are:
- Formulate approaches to current asset management, capital budgeting, financial structure, dividend policy, long-term financing, and mergers.
- Analyze approaches to current asset management, capital budgeting, financial structure, dividend policy, long-term financing, and mergers.
- Write clearly and concisely about financial management using proper writing mechanics.
Analyzing the Performance of the Stocks Assignment
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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