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
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 illust
rate 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 think
orswim portfolio.
The second
need
s to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and m
aking decisions regarding both
companies. After evaluating these companies financial data, you will then decide which companys st
ock 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
f
or 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 add
ress 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 acc
urate 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
-
Y
ear
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 companys 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 companys sto
ck price.
C.
How
do these two stocks
compare
in terms of three
-
year returns? What does this indi
cate 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 yea
rs 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 appropr
iate date
range you should us
e.
V.
Performance
O
ver 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 t
he 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 su
pporting your answer with data.
The company I have is Apple and Samsung is my competior company
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started