Analyze corporate financial data for multiple companies in evaluating past and future financial performances
Final
Project Part II
Part II
Overview
For this
part of
the final project
, you will be given a scenario in which you are asked to illust
rate your financial computation
and analysis skills.
This
part of the
assessment addresses the following course outcomes:
Compute financial ratios, time value, variables,
and returns using industry standard tools for optimizing financial success
Analyze corporate financial data for multiple companies in evaluating past and future financial performances
Part II
Prompt
For this section of your employment exam, you will selec
t two companies. The first company needs to come from your TDAU thinkorswim portfolio.
The second
needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, a
nd making decisions regarding bot
h
companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investm
ent.
This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house a
ll of your quantitative data and
formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to t
he questions asked below,
composed in a cohesive manner. If you are referring to data that is foun
d within the workbooks in Part A, be sure to include a citation
—
f
or example
,
“rate of
return is 3.570 USD
(E64, WB2),” where
E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor
can quick
ly and accurately check data entry, formula use, and financial calculations.
Your
submission
must address the following
critical elements
:
I.
Preparing
the Workbooks
A.
Download
the annual income statements, balance sheets, and cash flow statements for the
last three completed fiscal years for your chosen
companies. This information must be included in your final submission.
B.
Prepare a
worksheet
for each of the companies to display their financial data for the last three fiscal years. Ensure your data is acc
urate and
organized. Include these worksheets as a workbook in your final submission.
C.
Find historical
stock prices
for both companies and add this information to the respective spreadsheets. Consider the appropriate date range
you should use.
II.
Three
–
Y
ear
Returns
A.
What is the three
–
year return on the stock price of the
first company (Company A)
? How is the stock performing? Ensure that you use the
appropriate formula in your spreadsheets to calculate the three
–
year return on the given company’s stock price.
B.
What is the three
–
year return on the stock price of the
second company (Company B)
? How is this stock performing? Ensure that you use the
appropriate formula in your spreadsheets to calculate the three
–
year return on your chosen company’s sto
ck price.
C.
How
do these two stocks
compare
in terms of three
–
year returns? What does this indi
cate about these two companies?
III.
Financial
Calculations
A.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
price
–
to
–
earnings
ratio
for
the last three fiscal
years of the given and your chosen companies. Be sure that you are entering
and using the correct formula.
B.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
debt
–
to
–
equity ratios
for the last
three fiscal years
of the given and your chosen companies. Be sure that you are entering
and using the correct formula.
C.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
return
–
on
–
equity ratios
for the last three fiscal
years of the given and your chosen companies. Be sure that you are entering
and using the correct formula.
D.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
earnings per share
for the la
st three fiscal years of
the given and your chosen companies. Be sure that you are entering
and using the correct formula.
E.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
profit margins
for the last three fiscal years of the
given and your chosen companies. Be sure that you are entering
and using the correct formula.
F.
Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the
free cash flows
for the last
three fiscal years of the
given and your chosen companies. Be sure that you are entering
and using the correct formula.
IV.
Industry Averages
A.
Obtain current
industry averages
of three of the
financial calculations
above for both companies and add this informat
ion to your spreadsheet
for comparison. Ensure the accuracy and organization of your data.
B.
In this context, how is each company’s
financial health
? How do these two companies compare to one another? Consider the appropr
iate date
range you should use.
V.
Perfo
rmance
O
ver Time
A.
Analyze the performance of the
Company A
over time. What financial strengths and weaknesses does this company have? Consider addressing
the free cash flows and
ratios you calculated earlier.
B.
Analyze the performance of your
Company B
over t
ime. What financial strengths and weaknesses does this company have? Consider addressing
the free cash flows and
ratios you calculated earlier.
C.
Analyze how the data
differ
between these two companies. Why do you think this is? Consider addressing the free
cash flows and ratios you
calculated earlier.
VI.
Investment
A.
Are the companies considered
growth or value
companies? Why?
B.
Which company’s
stock
is the better investment? Consider su
pporting your answer with data.
Final Project Part II Rubric
Guidelines for
Submission
:
This part of the final project will
be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and
formulas, along with any of the information that is relevant for your chosen company. Part B will cont
ain your answers to the prompts, composed in a cohesive
manner. Part B should
use double spacing, 12
–
point Times New Roman font, and one
–
inch margins. Citations should be formatted according to APA style.
Instructor Feedback:
This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more in
formation,
review
these instructions
.
Critical Elements
Exemplary
Proficient
Needs Improvement
Not Evident
Value
Preparing: Download
Downloads and includes annual
income statements, balance
sheets, and cash flow
statements for the last
three
fiscal years for
chosen
companies
(100%)
Downloads and includes annual income
statements, balance sheets, and cash
flow statements for chosen companies
but is missing various components
(55%)
Does not download and include
annual income statements,
balance sheets, and cash flow
statements for the last
three
fiscal years for chosen
companies
(0%)
2
Preparing: Worksheet
Prepares worksheet for chosen
and given companies,
displaying all financial data for
the last
three
fiscal years in an
accurate and organized manner
(100%)
Prepares worksheet for chosen and
given companies, displaying financial
data for the last
three
fisc
al years
,
but
worksheets are unorganized, inaccurate,
or incomplete (55%)
Does not prepare worksheets
for both the chosen and given
companies
(0%)
2
Preparing: Stock Prices
Adds historical stock prices for
an appropriate date range for
the chosen and
given
companies to their respective
worksheets
(100%)
Adds historical stock prices for the
chosen and given companies
,
but data
has been
inaccurately entered or
is
not
for an appropriate date range
(55%)
Does not add historical stock
prices for the given a
nd chosen
companies to their respective
worksheets
(0%)
2
Returns: Company A
Meets “Proficient” criteria and
logically explains reasoning
behind indication of stock
performance
(100%)
Correctly calculates the
three
–
year return on the stock price
of the
given company and
accurately indicates how this
stock is performing
(85%)
Calculates the
three
–
year return on the
stock price of the given company
,
but
calculation is incorrect or indication of
how this stock is performing is
inaccurate or missing
(55%)
Does not calculate the
three
–
year return on the stock price of
the given company
(0%)
5.63
Returns: Company B
Meets “Proficient” criteria and
logically explains reasoning
behind indication of stock
performance
(100%)
Correctly calculates the
three
–
year
return on the stock price
of the chosen company and
accurately indicates how this
stock is performing
(85%)
Calculates the
three
–
year return on the
stock price of the chosen company
,
but
calculation is incorrect or indication of
how this stock is performin
g is
inaccurate or missing
(55%)
Does not calculate the
three
–
year return on the stock price of
the chosen company
(0%)
5.63
Returns: Compare
Meets “Proficient” criteria
,
and
explanation demonstrates
nuanced understanding of
three
–
year returns and their
i
mplications
(100%)
Compares the
three
–
year
returns of the given and chosen
companies, explaining what
this indicates about each
company
(85%)
Compares the
three
–
year returns of the
given and chosen companies, but
explanation of what this indicates about
each company is cursory or missing
(55%)
Does not compare the
three
–
year returns of the given and
chosen companies
(0%)
6.43
Calculations: Price
–
to
–
Earnings Ratios
Correctly calculates the price
–
to
–
earnings ratios for the last
three
fiscal years of the
given
and chosen companies
(100%)
Calculates the price
–
to
–
earnings ratios of
the given and chosen companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the price
–
to
–
earnings ratios of the given
and
chosen companies
(0%)
5.63
Calculations: Debt
–
to
–
Equity Ratios
Correctly calculates the debt
–
to
–
equity ratios for the last
three
fiscal years of the given
and chosen companies
(100%)
Calculates the debt
–
to
–
equity ratios of
the given and chosen
companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the debt
–
to
–
equity ratios of the given and
chosen companies
(0%)
5.63
Calculations: Return
–
on
–
Equity Ratios
Correctly calculates the return
–
on
–
equity ratios for the last
three
fiscal years of the given
and chosen companies
(100%)
Calculates the return
–
on
–
equity ratios of
the given and chosen companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the return
–
on
–
equity ratios of the given and
chosen companies
(0%)
5.63
Calculations:
Earnings
Per Share
Correctly calculates the
earnings per share
for the last
three
fiscal years of the given
and chosen
companies
(100%)
Calculates the
earnings per share
of the
given and chosen companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the
earnings
per share
ratios of the given and
chosen companies
(0%
)
5.63
Calculations: Profit
Margins
Correctly calculates the profit
margins for the last
three
fiscal
years of the given and chosen
companies
(100%)
Calculates the profit margins of the
given and chosen companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the profit
margins of the given and chosen
companies
(0%)
5.63
Calculations: Free Cash
Flows
Correctly calculates the free
cash flows for the last
three
fiscal years of the given and
chosen companies
(100%)
Calculates the free cash flows of the
given and chosen companies
,
but
calculations are incorrect or
do
not
consider the last
three
fiscal years
(55%)
Does not calculate the free cash
flows of the given and chosen
companies
(0%)
5.63
Industry Averages:
Industry Averages
Adds
current industry averages
for chosen and given
companies to worksheet in an
accurate and organized manner
(100%)
Adds
current industry averages for
chosen and given companies to
worksheets, but some data
is
inaccurate, unorganized, or missing
(55%)
Does not add
current industry
averages for chosen and given
companies to worksheets
(0%)
2
Industry Averages:
Financial Health
Meets “Proficient” criteria and
includes current industry
averages within an
appropriate
date range
(100%)
Analyzes the given and chosen
companies’ financial health by
comparing the two companies’
current industry averages
(85%)
Analyzes the given and chosen
companies’ financial health by
comparing the two companies’ industry
avera
ges but does not consider
the
current industry rates
(55%)
Does not analyze the given and
chosen companies’ financial
health
(0%)
6.43
Performance: Company
A
Meets “Proficient” criteria and
references free cash flow and
ratios calculated for the given
company in analysis
(100%)
Comprehensively analyzes the
strengths and weaknesses of
the given company over time
(85%)
Analyzes the strengths and weaknesses
of the given company over time, but
analysis is not comprehensive
(55%)
Does not analyze the strengt
hs
and weaknesses of the given
company over time
(0%)
6.43
Performance: Company
B
Meets “Proficient” criteria and
references free cash flow and
ratios calculated for the chosen
company in analysis
(100%)
Comprehensively analyzes the
strengths and
weaknesses of
the chosen company over time
(85%)
Analyzes the strengths and weaknesses
of the chosen company over time, but
analysis is not comprehensive
(55%)
Does not analyze the strengths
and weaknesses of the chosen
company over time
(0%)
6.43
Performance: Differ
Meets “Proficient” criteria and
references the companies’ free
cash flows and ratios calculated
in analysis
(100%)
Accurately contrasts the
performances of the given and
chosen companies over time,
including a logical, proposed
explanation of these
performances
(85%)
Contrasts the performances of the given
and chosen companies over time
,
but
analysis is inaccurate or cursory
,
or
the
included explanation of these
performances is illogical or cursory
(55%)
Does not contrast the
per
formances of the given and
chosen companies over time
(0%)
6.43
Investment: Growth or
Value
Meets “Proficient” criteria and
includes quantitative data to
support analysis
(100%)
Comprehensively analyzes
whether the companies are
considered growth or value
companies, including a logical
explanation of why
(85%)
Analyzes whether the companies are
considered growth or value companies
,
but analysis is not comprehensive
,
or
the
explanation included is illogical or
cursory
(55%)
Does not analyze whether the
comp
anies are considered
growth or value companies
(0%)
6.43
Investment: Stock
Meets “Proficient” criteria and
includes quantitative data to
support analysis
(100%)
Analyzes each company’s stock,
including a logical explanation
of personal preference of
which
stock to purchase
(85%)
Analyzes each company’s stock,
including an explanation of personal
preference of stock options, but analysis
or explanation is illogical or cursory
(55%)
Does not analyze each
company’s stock
(0%)
6.43
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy to read
format
(100%)
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
(85%)
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main
ideas
(55%)
Submission has critical errors
related to citations, grammar,
spelling, syntax, or o
rganization
that prevent understanding of
ideas
(0%)
1.95
Earned
Total
100%
Final
Project Part III
Part III
Overview
To make corporate finance decisions, take an advanced finance course, or pursue a career in finance, you will need to underst
and
basic concepts. This includes
going beyond the number crunching and reading graphs in order to analyze various financial indicators. This analysis can lead
to many important decisions in
your financial career.
For this
part of the final project
, you will b
e given a scenario in which you are asked to illustrate your financial knowledge and analysis
skills.
This
part of the
assessment addresses the following course outcomes:
Analyze the roles and responsibilities of financial managers in confirming
compliance with federal and shareholder requirements
Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropri
ate private and corporate
investments
Compute financial ratios, time value, va
riables, and returns using industry standard tools for optimizing financial success
Analyze corporate financial data for multiple companies in evaluating past and future financial performances
Part III
Prompt
The results of both sections of your employment examination have finally been received, and you were offered the position. Yo
u have a few important decisions
to make before you can formally accept or decline the position.
When composing your answers to the
se decisions, ensure that they are cohesive and read like a
short essay.
Your
submission
must address the following
critical elements
:
I.
School
Versus
Work
A.
The school you would like to attend costs $100,000. To help
finance your education
, you need to cho
ose whether or not to sell your 1,000
shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their
30
–
year maturity
date, or a combination of both. Provide the appropriate data and calculation
s that you would perform t
o make this decision
.
B.
What are the
advantages and disadvantages
of selling a combination of stocks and bonds? Be sure
to support your answers.
C.
Suppose that you
choose to sell
your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind
this choice? Consider supporting your
answer with quantitative data.
D.
Suppose that you choose to
accept the job
. What is your financial reasoning
behind this choice? Be sure to support your
answer with
quantitative data.
II.
Bonus
Versus
Stock
A.
The company has
offered
you a $5,000 bonus, which you may receive today
,
or 100 shares of the company’s stock, which has a current stock
price of $50 per share
. Mathematically
, what is the best choice? Why?
B.
What are the
advantages and disadvantages
of each option? B
e sure to support your answers.
C.
What would you ultimately
choose
to do? What is your financial reasoning behind this choice? Consider supporting your
answer with
quantitative data.
III.
Compliance
A.
While
investigating
the shares offered to you by your potential boss, you discover that the company you are considering working for is not
registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potenti
al sharehol
der? Be
sure to reference a
ny applicable statutes or laws.
B.
You know that
accepting
this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager,
what federal and shareholder requirements would you n
eed to be familiar with in order to ensure that you
are being completely compliant?
Final Project Part III
R
ubric
Guidelines for Submission
: Please ensure that your
decision plan
is submitted as one comprehensive and cohesive short essay
. It should use
double spacing, 12
–
point Times New Roman font, and one
–
inch margins. Citations should be formatted according to APA style
.
Instructor Feedback:
This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Cente
r. For more information,
review
these instructions
.
Critical Elements
Exemplary
Proficient
Needs Improvement
Not Evident
Value
School
Versus
Work:
Finance Your Education
Accurately calculates the worth
of stocks, bonds, and
combinations of stocks and
bonds, including the appropriate
data and calculations with
submission
(100%)
Calculates the worth of stocks,
bonds, and combinati
ons of
stocks and bonds, but calculation
is inaccurate or appropriate data
and/or calculations are not
included in submission
(55%)
Does not calculate the worth of
stocks, bonds, and combinations
of stocks and bonds
(0%)
11.88
School Versus
Work:
Advantages and
Disadvantages
Meets “Proficient” criteria and
provides historical data, as well
as quantitative data, to support
answer
(100%)
Comprehensively differentiates
the advantages and
disadvantages of selling a
combination of stocks and bonds
and
provides support for answer
(85%)
Differentiates the advantages and
disadvantages of selling a
combination of stocks and bonds
,
but analysis is not comprehensive
or support is cursory or missing
(55%)
Does not differentiate the
advantages and disadvantages
of
selling a combination of stocks
and bonds
(0%)
11.88
School
Versus
Work:
Choose to Sell
Meets “Proficient” criteria and
supports examination with
quantitative data
(100%)
Examines choice to sell stocks,
bonds, or combination of both,
explaining the
financial
reasoning behind the choice
(85%)
Examines choice to sell stocks,
bonds, or combination of both
,
but explanation of the financial
reasoning behind the choice is
cursory or missing
(55%)
Does not examine choice to sell
stocks, bonds, or combinatio
n of
both
(0%)
7.92
School
Versus
Work:
Accept the Job
Meets “Proficient” criteria and
supports examination with
quantitative data
(100%)
Examines choice to accept the
job, explaining the financial
reasoning behind the choice
(85%)
Examines choice to
accept the
job
,
but explanation of the
financial reasoning behind the
choice is cursory or missing
(55%)
Does not examine choice to
accept the job
(0%)
7.92
Bonus
Versus
Stock:
Offered
Meets “Proficient” criteria
,
and
explanation of the best choice
demonstrates nuanced
understanding of the time
–
value
of money
(100%)
Accurately calculates the best
choice of receiving a cash bonus
versus receiving company stock,
including an explanation of the
best choice
(85%)
Calcu
lates the best choice of
receiving a cash bonus versus
receiving company stock, but
calculation is inaccurate or
explanation of best choice is
cursory or missing
(55%)
Does not calculate the best choice
of receiving a cash bonus versus
receiving company st
ock
(0%)
11.88
Bonus
Versus
Stock:
Advantages and
Disadvantages
Meets “Proficient” criteria
,
and
analysis includes quantitative
data
(100%)
Comprehensively analyzes the
advantages and disadvantages of
the cash and stock options,
supporting each option
(85%)
Analyzes the advantages and
disadvantages of the cash and
stock options
,
but analysis is not
comprehensive or
support for
each option is cursory or missing
(
55%)
Does not analyze the advantages
or disadvantages of the cash and
stock options
(0%)
11.8
8
Bonus
Versus
Stock:
Choose
Meets “Proficient” criteria and
supports choice with
quantitative data
(100%)
Chooses cash or stock option,
including logical financial
reasoning behind the choice
(85%)
Chooses cash or stock option,
including financial
reasoning
behind the choice
,
but reasoning
is illogical or missing
(55%)
Does not choose cash or stock
option
(0%)
7.92
Compliance:
Investigating
Meets “Proficient” criteria and
references demonstrate
knowledge of current events in
finance
(100%)
Comprehensively analyzes the
influence of noncompliance on
potential employees and
potential shareholders, including
references to statutes and laws
in analysis
(85%)
Analyzes the influence of
noncompliance on potential
employees and potential
shareholders
,
but analysis is not
comprehensive or support does
not include references to statutes
or laws
(55%)
Does not analyze the influence of
noncompliance on potential
employees or potential
shareholders
(0%)
11.88
Compliance: Accepting
Meets “Proficient”
criteria
,
and
analysis demonstrates nuanced
understanding of requirements
for compliance with federal laws
(100%)
Comprehensively analyzes the
federal and shareholder
requirements necessary for a
financial manager to become
familiar with in order to ensure
compliance
(85%)
Analyzes the federal and
shareholder requirements
necessary for a financial manager
to become familiar with in order
to ensure compliance
,
but
analysis is not comprehensive
(55%)
Does not analyze the federal and
shareholder requirements
necessary for a financial manager
to become familiar with in order
to ensure compliance
(0%)
11.88
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional
and easy to read
format
(100%)
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
(85%)
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readabi
lity
and articulation of main ideas
(55%)
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
i
