FIN-320 6-2 Final Project Submission, Part II

For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU think orswim 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 companys 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 citationfor example, rate of return is 3.570USD(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 thefirst 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 companys stock price.

B.

What is the three-year return on the stock price of thesecond 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 companys 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.

IV. Industry Averages

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 companys 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.

VI. Investment

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

B. Which companys stock is the better investment? Consider supporting your answer with data.

The companies I have in TDAU are WalMart, Amazon, and Kimberly-Clark!!!