QUESTION

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 illustrate 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 select 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, and making decisions regarding both companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investment.

This section of your employment examination must 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 companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for 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 quickly 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 accurate 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-Year 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 stock price.

C. How do these two stocks compare in terms of three-year returns? What does this indicate 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 last 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.

A. Obtain current industry averages of three of the financial calculations above for both companies and add this information 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 appropriate date range you should use.

V. Performance Over 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 time. 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.

A. Are the companies considered growth or value companies? Why?

B. Which company’s stock is the better investment? Consider supporting 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 contain 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 information, review these instructions.

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

Preparing: Download

Downloads and includes annual

Downloads and includes annual income

Does not download and include

2

income statements, balance

statements, balance sheets, and cash

annual income statements,

sheets, and cash flow

flow statements for chosen companies

balance sheets, and cash flow

statements for the last three

but is missing various components

statements for the last three

fiscal years for chosen

(55%)

fiscal years for chosen

companies (100%)

companies (0%)

Preparing: Worksheet

Prepares worksheet for chosen

Prepares worksheet for chosen and

Does not prepare worksheets

2

and given companies,

given companies, displaying financial

for both the chosen and given

displaying all financial data for

data for the last three fiscal years, but

companies (0%)

the last three fiscal years in an

worksheets are unorganized, inaccurate,

accurate and organized manner

or incomplete (55%)

(100%)

Preparing: Stock Prices

Adds historical stock prices for

Adds historical stock prices for the

Does not add historical stock

2

an appropriate date range for

chosen and given companies, but data

prices for the given and chosen

the chosen and given

has been inaccurately entered or is not

companies to their respective

companies to their respective

for an appropriate date range (55%)

worksheets (0%)

worksheets (100%)

Returns: Company A

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the given company, but

year return on the stock price of

behind indication of stock

of the given company and

calculation is incorrect or indication of

the given company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Company B

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the chosen company, but

year return on the stock price of

behind indication of stock

of the chosen company and

calculation is incorrect or indication of

the chosen company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Compare

Meets “Proficient” criteria, and

Compares the three-year

Compares the three-year returns of the

Does not compare the three-

6.43

explanation demonstrates

returns of the given and chosen

given and chosen companies, but

year returns of the given and

nuanced understanding of

companies, explaining what

explanation of what this indicates about

chosen companies (0%)

three-year returns and their

this indicates about each

each company is cursory or missing

implications (100%)

company (85%)

(55%)

Calculations: Price-to-

Correctly calculates the price-

Calculates the price-to-earnings ratios of

Does not calculate the price-to-

5.63

Earnings Ratios

to-earnings ratios for the last

the given and chosen companies, but

earnings ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Debt-to-

Correctly calculates the debt-

Calculates the debt-to-equity ratios of

Does not calculate the debt-to-

5.63

Equity Ratios

to-equity ratios for the last

the given and chosen companies, but

equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Return-

Correctly calculates the return-

Calculates the return-on-equity ratios of

Does not calculate the return-

5.63

on-Equity Ratios

on-equity ratios for the last

the given and chosen companies, but

on-equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Earnings

Correctly calculates the

Calculates the earnings per share of the

Does not calculate the earnings

5.63

Per Share

earnings per share for the last

given and chosen companies, but

per share ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Profit

Correctly calculates the profit

Calculates the profit margins of the

Does not calculate the profit

5.63

Margins

margins for the last three fiscal

given and chosen companies, but

margins of the given and chosen

years of the given and chosen

calculations are incorrect or do not

companies (0%)

companies (100%)

consider the last three fiscal years (55%)

Calculations: Free Cash

Correctly calculates the free

Calculates the free cash flows of the

Does not calculate the free cash

5.63

Flows

cash flows for the last three

given and chosen companies, but

flows of the given and chosen

fiscal years of the given and

calculations are incorrect or do not

companies (0%)

chosen companies (100%)

consider the last three fiscal years (55%)

Industry Averages:

Adds current industry averages

Adds current industry averages for

Does not add current industry

2

Industry Averages

for chosen and given

chosen and given companies to

averages for chosen and given

companies to worksheet in an

worksheets, but some data is

companies to worksheets (0%)

accurate and organized manner

inaccurate, unorganized, or missing

(100%)

(55%)

Industry Averages:

Meets “Proficient” criteria and

Analyzes the given and chosen

Analyzes the given and chosen

Does not analyze the given and

6.43

Financial Health

includes current industry

companies’ financial health by

companies’ financial health by

chosen companies’ financial

averages within an appropriate

comparing the two companies’

comparing the two companies’ industry

health (0%)

date range (100%)

current industry averages

averages but does not consider the

(85%)

current industry rates (55%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

A

references free cash flow and

strengths and weaknesses of

of the given company over time, but

and weaknesses of the given

ratios calculated for the given

the given company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

B

references free cash flow and

strengths and weaknesses of

of the chosen company over time, but

and weaknesses of the chosen

ratios calculated for the chosen

the chosen company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Differ

Meets “Proficient” criteria and

Accurately contrasts the

Contrasts the performances of the given

Does not contrast the

6.43

references the companies’ free

performances of the given and

and chosen companies over time, but

performances of the given and

cash flows and ratios calculated

chosen companies over time,

analysis is inaccurate or cursory, or the

chosen companies over time

in analysis (100%)

including a logical, proposed

included explanation of these

(0%)

explanation of these

performances is illogical or cursory

performances (85%)

(55%)

Investment: Growth or

Meets “Proficient” criteria and

Comprehensively analyzes

Analyzes whether the companies are

Does not analyze whether the

6.43

Value

includes quantitative data to

whether the companies are

considered growth or value companies,

companies are considered

support analysis (100%)

considered growth or value

but analysis is not comprehensive, or

growth or value companies (0%)

companies, including a logical

the explanation included is illogical or

explanation of why (85%)

cursory (55%)

Investment: Stock

Meets “Proficient” criteria and

Analyzes each company’s stock,

Analyzes each company’s stock,

Does not analyze each

6.43

includes quantitative data to

including a logical explanation

including an explanation of personal

company’s stock (0%)

support analysis (100%)

of personal preference of

preference of stock options, but analysis

which stock to purchase (85%)

or explanation is illogical or cursory

(55%)

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors related to

Submission has critical errors

1.95

Response

related to citations, grammar,

related to citations, grammar,

citations, grammar, spelling, syntax, or

related to citations, grammar,

spelling, syntax, and

spelling, syntax, or organization

organization that negatively impact

spelling, syntax, or organization

organization and is presented in

(85%)

readability and articulation of main

that prevent understanding of

a professional and easy to read

ideas (55%)

ideas (0%)

format (100%)

Earned Total

100%

TUTORIAL PREVIEW

Fin320 Final Project Part II - 2017

Dated: 9th Mar'18 07:51 AM

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`Preview of Part_A__Analysis.xlsx`

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`Preview of Part_B.docx`

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