Company name is Walmart – savvyessaywriters.net | Savvy Essay Writers
Company name is Walmart – savvyessaywriters.net | Savvy Essay Writers
Savvy Essay Writers Business & Finance Assignment Help
Bond and Stock Performance AnalysisOBJECTIVEIn this part of the project you are to assume to have been hired to join a team serving as aninternal financial analyst to THE COMPANY. Your client plans to invest in bonds and (or)stocks issued by THE COMPANY (SELECTED BY INSTRUCTOR). In part 6 of theassignment you are asked to provide some recommendations to THE COMPANY’Smanagement.THE COMPANY for part 2 of the project can be the company that you were using for theResearch Project Part 1 or ANOTHER COMPANY determined by your professor. THECOMPANY for this part of the project must have bonds listed on the website http://finra-markets.morningstar.com/BondCenter/Default.jsp. To find the information on bonds, click onSearch in the middle of the screen (under Market Center Bond Guide), under Quick Search typethe Issuer Name and the Symbol, and click SHOW RESULTS.Alternatively, you can request approval of another publicly traded company. This request mustbe submitted before the end of the first week of the course. The request must includeidentification of the company by ticker symbol and namea reasonable and appropriate explanation of why you want to examine the alternativecompanythe source of the analyst’s report that will be used in the analysis (which must besubmitted to me)acknowledgement by you that all the specific elements of the assignment (see below) willbe prepared by you and included in the final research project reportSUGGESTED WEBSITESwww.morningstar.com – To find the information for your company you need to type the stocksymbol in the Quotes window to get into the company’s page.http://finra-markets.morningstar.com/BondCenter/Default.jsp – To find the information onbonds, click on Search in the middle of the screen (under Market Center Bond Guide), underQuick Search type the Issuer Name and the Symbol, and click SHOW RESULTS.https://markets.businessinsider.com/bonds. To find the information on bonds, scroll down thepage, type the name of the company in the window under Bond Finder, and click SEARCH.www.marketwatch.com -To find the information for your company you need to type the stocksymbol in the Search window to get into the company’s page.www.money.cnn.com -To find the information for your company you need to type the stocksymbol in the Search window to get into the company’s page.www.finance.yahoo.com – To find the information for your company you need to type the stocksymbol in the Search window to get into the company’s page.www.nyse.com – Click on Data, then click on Stocks (under Quotes), and type the name of thecompany or the stock symbol in the window “Keyword or symbol” to get into the company’spage.www.nasdaq.com – To find the information for your company you need to type the stock symbolin the Search window to get into the company’s page.Company’s websitesYOUR SPECIFIC ASSIGNMENTUsing the information from the websites the student will develop evaluation of bond and stockperformance for THE COMPANY (SELECTED BY INSTRUCTOR). (The evaluation portionwill total 85% of the assignment grade)-1—Introduction (3% of the project grade)- The paper should begin with a short introductionthat explains the purpose of the paper, and provides an overview of the contents that follow (oneshort paragraph).-2- The financial leverage ratios (15% of the project grade)a) Find the financial leverage ratios for THE COMPANY assigned for you of the project forthe last 3-5 years in the Internet. Present these ratios as the table(s) in your project.You can find these ratios in the Internet or calculate them. If you use published ratios youmust indicate that and cite their source.Debt-to-assets ratio (Debt ratio)Debt-to Equity ratioInterest Coverage ratio (the Times Interest Earned)b) Write (about) 1 page of the analysis of the ratio results. In your analysis you should answerthe following questions. Please explain your answer to each question.How is THE COMPANY financing its assets? Discuss how much risk is associated withthe financial structure the company? How can this risk be measured? Please explain.-3- Collect and evaluate the data about bond performance of the assigned company. (20% of theproject grade).The information on bonds can be found on the websitehttp://finra-markets.morningstar.com/BondCenter/Default.jsp. To find the information on bonds,click on Search in the middle of the screen (under Market Center Bond Guide), under QuickSearch type the Issuer Name and the Symbol, and click SHOW RESULTS.Another useful website on bond information is https://markets.businessinsider.com/bonds. Tofind the information on bonds, scroll down the page, type the name of the company in thewindow under Bond Finder, and click SEARCH.Important: Copy the quotations of two bonds issued by THE COMPANY (SELECTED BYINSTRUCTOR) that contain the Price. Present these quotations in your project.1.What were the last prices of the bonds (listed in the Last Sale column)? Assume that parvalue of the bond is $1,000. How much the investor will pay for the bond if he/shepurchased the bond at the Price listed in the Last Sale column. Show your work in yourproject.2.Assume that par value of the bond is $1,000. Calculate the annual coupon interestpayments. Show your work in your project.3.Assume that par value of the bond is $1,000. Calculate the current yield of the bonds.Show your work in your project.4.How much is the YTM listed in quotations of the bonds (in the Last Sale column – Yield)(no calculations are required for this question?5.Write a 1-2 page of the analysis of the bonds. In your analysis you should answer thefollowing questions. Please explain your answer to each question.a) If you are going to buy a bond issued by THE COMPANY, which bond wouldyou choose? Why?b) Are these bonds callable? If the bonds that you chose are callable (non-callable),will it change your decision to buy them?c) If you are an investor who is looking for a bond to invest in, are you going to buya bond that you chose? Take a look at the balance sheet and income statement ofthe company. What data or ratios support your decision to buy this bond or not?You may want to incorporate the results of the Research Project Part 1, as well asthe results of the financial leverage ratios to answer this question. You shoulddevelop a specific recommendation, with supporting rationale for theinvestor to explain your answer.-4- Collect and evaluate the data about stock performance of the assigned company for thelast one year. (Totally 30% of the project grade).1) Find the market ratios for the company for the last 1-3 years and its major competitor for thelast year in the Internet. (15% of the project grade)Price/Earnings ratioMarket/Book ratio (also called (Price/Book ratio)Earnings per shareDividends per shareOther market ratios on your choiceThese ratios are available on www.morningstar.com > Company’s page – underValuation, Financials, and under DividendsYou can find these ratios in the Internet or calculate them. If you use published ratios youmust indicate that and cite their source.a. Present the market ratios as the table(s) in your project.b. Write about 1 page of analysis of the market ratio results that you found. Compare themarket ratio results against the industry or main competitor. In your report please answerthe question: Are the common stockholders receiving an adequate return on theirinvestment?c. Compare the P/E ratio of your company with the industry average or 5-year average. Isthe stock overvalued, undervalued, or properly valued? Why?d. In accordance with your findings, is it reasonable to buy the stock? Please explain youranswers.-2) Analysis of the historical stock prices trend for the last year. (15% of the project grade)a. Collect and evaluate the data about stock prices of the assigned company for the last oneyear for the company and its major competitor.b. Create the chart(s) using the stock price chart tools on the websites or Excel. Present thechart(s) in your project.c. Write about 0.5 page of analysis the historic stock prices trend for the last year.In accordance with your findings, is it reasonable to buy the stock? Why? Please explainyour answer.-5- Develop a specific recommendation, with supporting rationale for the COMPANY’Smanagement – Think about the financial strategy of the company, how to best balance THECOMPANY’S financial leverage to optimize shareholder wealth going forward taking intoconsideration the company’s current market position, credit rating, dividend policy, etc. (12% ofthe project grade).-6- Reflection – the students should write a paragraph in their own words reflecting on what theylearned from the assignment and how they think they could apply what they learned in theworkplace. (5% of the project grade).PRESENTATION OF PAPER AND WRITING (15%) of the project grade):-Organization, Format and Presentation of Paper including the Title page, Introduction, Body,and Summary. Each section of the paper must begin with a sub-heading. Please use the sub-headings included in the assignment (4% of the project grade)Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in thePaper (3% of the project grade)Logical and Smooth Flowing Transitions and Relationships among Sections of the WrittenReport (3% of the project grade)Research Sources and Significance of Research Information and Data, Use of APA CitationMethodology (5% of the project grade)
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