Would you invest your financial capital in the selected firm as a shareholder?, Fin620 research paper help

Financial Management researchproject    The researchpaper assignment is worth 220 points or 22% of the course grade.  A grade of C or better is required as per MBApolicy as this is the Final Assessment for the course. Theobjectives/purpose of the research paper project are to enable you to do acomprehensive financial analysis of a publicly traded corporation; and provideyou with substantial information for you to make recommendations regardinginvesting in this corporation.Your financial analysis report will bedriven by a rigorous ratio analysis, and aggressively supplemented with yourwritten analysis, interpretation, and evaluation of the data. Your research should be strategicallydriven by two probing questions:-Wouldyou invest your financial capital in the selected firm as a shareholder?-Wouldyou invest your human and intellectual capital in the firm as an employee?Steps in preparation of financialanalysis report:1.) Selecta publicly held company 2.) Selecta benchmark firm to compare your company against. The benchmark firm istypically the largest competitor.3.) Obtainthe firm’s balance sheet, income statement, and statement of cash flowsfor  the past 5years. Download or read the firm’s annual report.4.)  Go to:  http://www.sec.gov/edgar/searchedgar/webusers.htmResearch EDGAR’s database foradditional SEC report filings: 8-k, 10-Q.4.) Thefollowing table is the type of Excel or Word table that should be used togather  and report your ratio andfinancial performance data. Note the 5 financial diagnostic categories thatshould be used in your analysis. Financial diagnostic categories Chosen company  vs. Benchmark competitor1.)  Liquidity ofshort-term assets-Current ratio-Cash ratio-Quick ratio-Current ratio-Cash ratio-Quick ratio2.)  Long-termdebt-paying ability-Debt ratio-Debt-equity ratio-Times interest earned-Debt ratio-Debt-equity ratio-Times interest earned3.)  Profitability-Net income/sales (profit margin)-Net income/assets (ROA)-Net income/shareholder equity (ROE)-Net income/sales (profit margin)-Net income/assets (ROA)-Net income/shareholder equity (ROE)4.)  Asset utilization/management efficiency-Total asset turnover-Inventory turnover measures-Accounts receivable turnover-Total asset turnover-Inventory turnover measures-Accounts receivable turnover5.)  Market measures-Price/earnings ratio-Earnings per common share-Dividend payout-Price/earnings ratio-Earnings per common share-Dividend payoutUse 2-3 ratios per diagnosticcategory. Place your ratio calculations in the table for your selectedcompanies—primary company and benchmark competitor. Using 5 diagnosticcategories, and 3 ratios to assess each category, results in 15 ratio measuresper company that will be compared side by side.6.)  To validate yourresearch, 5 years of data should be analyzed.7.) The financialanalysis report must be written properly. They must include a title page, atable of contents, and a reference page. For both midterm and final report,information sources from the web, etc. must be cited properly, using APAstyle.  This meansthat every table that you cut and pasted or typed from the web must have asource at the bottom of the table AND that citing must also be included in areference page at the end of the report. The parts ofthe research paper are discussed below. The completed report (parts a through h)is due day 7 of week 6. Your project should include:a. Anoverview of the corporation.  i.  Provide general information regardingthe type of business, products and/or services, location of headquarters, nameof CEO, number of employees, and countries of operation, etc.b. Thelatest financial statements i.  Get the income statement, balance sheet,cash flow statement, and the statement of owners’ equity for the past fiscalyear. Create Turnitin-friendly versions of the financial statements; do notjust ‘cut and paste’ them in your report. Do not forget to cite the sourceunder each statement.  ii.  If you cannot cut and paste them, youmay have to type in the information in a table in your report.c. Asummary of each financial statement i.  Take each statement and state the keyparts in words.  Tell a story from eachof the financial statements.  For example,for the income statement, the story starts like, “Total Revenues in 2010 were$10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profitmargin of $2 billion, or 20 percent of total revenues….After taking outinterest and taxes from EBIT, the net income was $0.5 billion, or 5 percent oftotal revenues.”d. Ratiocalculation (include 5 major types of ratios. Refer to chapter 3, Analysis ofFinancial Statements) i.  Organization of this section is basedon the FIVE types of ratios listed in the text book.  Calculate the ratios from the financialstatements in part c above using Excel or your calculator and present them in atable. ii.  Find industry financial ratios online(eg. Yahoo.com) and compare your corporation’s ratios to these industry ratios. iii.  Present your results following thefive types of ratios discussed in part d.  iv.  A table with both corporation andindustry ratios is required;  v.  e. Discussionof key statistics provided by sources like Yahoo finance. i.  There are many different other statisticsavailable for your corporation. These include market value, beta, and dilutedEPS, etc. Discuss some of the key statistics that you think can assist you todetermine if this corporation is a good buy or sell. f. Foryou to decide if a corporation’s stock is a good buy or sell, you must forecastseveral key variables, including the stock price.   i.  Use historical prices (5 years ofmonthly data recommended) and forecast the stock price for the next year. Useregression analysis, and/or moving average, etc. to create your forecast.   ii.  Create a graph from the historicaldata and show your forecast on the same graph. You can add a trend line to thegraph to help you with a forecast. Include the graph in your report. iii.  You need to say specifically what theforecasted value of the stock price is.  iv.  You must address the question, “Isthis forecast reasonable?”  Must youamend your analysis to get a more reasonable forecast?  g. Otherinformation pertinent to the corporation that could affect its futureperformance and stock price.   i.  This could include dividend policy,capital structure, bond ratings, expert opinions on TV, new projects,litigation, regulation, etc. Search for information on the web regarding thiscorporation. Look at company complaint blogs, etc.h. Recommendationregarding the future of this corporation.  i.  Is the stock a good buy, average buy,or a poor buy (implying a good sell)?   ii.  Include a justification of yourrecommendation based on your analysis and research.