A. Investment paper/project (20% of grade) a. Students will be assigned a publicly-traded U.S. based corporation, and will prepare a comprehensive financial analysis of that firm. b. The analysis will included: i. A qualitative assessment and narrative of the firm’s overall financial position ii. Analysis of the firm’s industry and their competitive position within that industry. iii. Detailed spreadsheet presentation of the WACC model iv. Detailed discounted cash flow analysis v. 5-year analysis of the firm’s financial statements 1. To include relevant ratio analysis. vi. Recommendation (buy/sell, long- or short-term) and rationale c. Format i. 12 pt Times New Roman ii. Cover page iii. Appendices to include, but not limited to: 1. Supporting financial and ratio analysis 2. Spreadsheet analysis iv. Reference page (APA format) Students seeking APA guidance are advised to consult Purdue OWL and/or ask questions: http://owl.english.purdue.edu/owl/resource/560/01/ Grading Criteria Maximum Points Background and brief history of the company (1page) 5 Assessment of the current Macroeconomic Environment (2 pages) 15 Industry Analysis (2 to 3 pages) 15 Analysis of the Income Statements (previous 5 years) (2-3 pages) 10 Analysis of the Statement of Cash flows (previous 5 years) (2 pages) 10 Analysis of the Balance Sheets including Capital Structure (previous 5 years) 10 Develop the model to estimate the Weighted Average Cost of Capital 15 Corporate Valuation (Discounted Cash Flow Model) 15 Recommendation (1 page) 5 Total 100. A. Investment paper/project (20% of grade) a. Students will be assigned a publicly-traded U.S. based corporation, and will prepare a comprehensive financial analysis of that firm. b. The analysis will included: i. A qualitative assessment and narrative of the firm’s overall financial position ii. Analysis of the firm’s industry and their competitive position within that industry. iii. Detailed spreadsheet presentation of the WACC model iv. Detailed discounted cash flow analysis v. 5-year analysis of the firm’s financial statements 1. To include relevant ratio analysis. vi. Recommendation (buy/sell, long- or short-term) and rationale c. Format i. 12 pt Times New Roman ii. Cover page iii. Appendices to include, but not limited to: 1. Supporting financial and ratio analysis 2. Spreadsheet analysis iv. Reference page (APA format) Students seeking APA guidance are advised to consult Purdue OWL and/or ask questions: http://owl.english.purdue.edu/owl/resource/560/01/ Grading Criteria Maximum Points Background and brief history of the company (1page) 5 Assessment of the current Macroeconomic Environment (2 pages) 15 Industry Analysis (2 to 3 pages) 15 Analysis of the Income Statements (previous 5 years) (2-3 pages) 10 Analysis of the Statement of Cash flows (previous 5 years) (2 pages) 10 Analysis of the Balance Sheets including Capital Structure (previous 5 years) 10 Develop the model to estimate the Weighted Average Cost of Capital 15 Corporate Valuation (Discounted Cash Flow Model) 15 Recommendation (1 page) 5 Total 100