Question
Can someone please help me? Even if it is a paragraph per section, to be able to guide me in the task. Answer never used
Can someone please help me? Even if it is a paragraph per section, to be able to guide me in the task. Answer never used before, thanks in advance,
You have just graduated from your university's MBA program and have got a job as a fund manager run by a prestigious banking investment company (choose a company). He has been awarded a $300 million portfolio to manage and invest. The fund is pension and retirement and its prospectives are long-term with moderate risk of capital loss and a required annual income of 9%. In order to reduce the risk of investments, you have been instructed to make 12 investments of $25 million each. Your first task is to determine whether the fund you are managing should invest $25 million in the company's stock you selected for your first decision to invest.
1. Business Strategy Analysis: You will develop an understanding of the company's business and competitive strategies. Which of the three generic competitive strategies do you use (low cost provider, differentiation, or concentration)? These concepts should be covered in no more than three paragraphs. Don't spend your time writing a company story. This is an analysis, not a history class.
2. Accounting Analysis: Investigate the accounting practices adopted by the company. These generally reflect a correct photograph of the company's economic performance. Did your investigation find any public announcements or revaluation of your profits or any other indication that the financial statements may be of dubious value? This can be achieved by reviewing deliveries of 8K states delivered to the SEC (this is a mandatory requirement for this written statement). These information deliveries can usually be found on the company's website under Investor Relations - SEC filings.
3. Financial Analysis: The financial reasons and measures of the company's cash flows in relation to its historical performance. For the purpose of this research work a 2-year review of history will suffice. You must use at least 10 of the reasons listed on page 103 of the textbook (Corporate Finance, 2nd Edition) including the four reasons for the utility.
4. Prospective Analysis: Develop expected performance measures and list assumptions related to your forecast. List of assumptions and reasons for your prognosis. You can also cite the work of other analysts who have published the expected revenue for the time period you are targeting. (Track: take a look at Y... o / Finance - Analysts' Opinion)
5. Conclusion: Will you or will you not invest $25 million in this company? Support your conclusion. Remember that a negative conclusion is as valid and valuable as a positive conclusion.
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