Instructions
Research Paper: Part I
In Unit VII of this course, you will submit a final paper on a publicly traded company of your choice. You will complete this paper over several units in this course. For this assignment, you will be completing the first part of this project. For this first assignment, follow the instructions below.
Select the company you will be researching for your paper. Compose a brief paper that gives an overview of your company. Your summary should include the following: the type of firm, the banking structure of the firm in terms of current and past investments, what industry it is in, and any relevant history or background information. Make sure to also incorporate how the firm currently structures its capital by identifying banking relationships.
Your paper must be at least two pages in length, and you must use at least two academic sources. Adhere to APA Style when creating citations and references for this assignment.
Future assignments with same company chosen: Do not need to complete these assignments below, this is just for reference when trying to choose a company.
*In Unit II, you began working on your research paper that will be due in Unit VII of this course. In this unit, you will continue researching the company that you selected for your paper. For this assignment, evaluate the following items in relation to your chosen company:
§ Which stock market exchange is the company listed on?
§ Look at the past three years’ worth of stock activity for your company.
o What is the average stock price during that period?
o What was the high/low price?
§ Has the company ever initiated a stock split?
§ How many shares of stock are outstanding? Authorized? Issued?
§ Would you invest in this company based on what you have evaluated? Why, or why not?
§ Compare this company’s stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.
*For this assignment, you will continue researching your chosen company. Compose a paper on the financials of your chosen firm; you will choose two ratios from each category (liquidity, profitability, and solvency) and conduct an analysis as well as highlight key areas/trends of the income statement and balance sheet. Be sure to answer the following questions in your response:
§ What do the ratios reflect?
§ Does the company appear healthy and headed in the right direction? Explain.
§ How does the company compare to another firm in the same industry in regards to financial metrics (for instance, a comparison of Target versus Walmart based on the basic ratio categories mentioned above)?
Your paper must be at least two pages in length, and you must use at least two sources. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.
*Then, you will need to examine your firm’s working capital management. Look at the firm’s annual report and answer the following questions:
§ What is the firm’s cash position? Does the firm reflect positive cash balances for the last three years?
§ What methods does the firm use to ensure and maintain positive cash flows?
§ What methods of short-term financing does the firm use?
Conclude your paper with a final recommendation about whether or not this company would be a good investment for potential investors