Question
Hello!I need someone to help me with this project. I have completed Milestone 1, the name of the company will be provided to you once
Hello!I need someone to help me with this project. I have completed Milestone 1, the name of the company will be provided to you once you have accepted this order. By the ends of this week, I will need Milestones 2, 3, 4 and 5 completed. The rest can be done at in the following weeks.
Thank you!
ObjectivesStudents should familiarize themselves with bonds and preferred stock as an investment opportunity and as a source of funds. In this assignment, students will determine why a fixed-income security may be offered by a firm, what features it must have in order to be attractive to investors, and what kind of financial results were achieved. Balance sheet accounts as well as certain ratios are to be analyzed.
Final Project Guidelines
Students should select a company that has issued bonds in the last 3 years so that the information sources can provide sufficient financial data for analysis. The selection is subject to faculty approval: the company choice should be posted as early as possible in the first week.
Post the following.
- Your company choice
- The security chosen
- When that security was issued
It's suggested that you work on at least one of each of the remaining milestones each week.
The Final Project is made up of the separate sections for each milestone listed below. Each section should be a minimum of two pages (excluding charts, graphs, etc.).You will be submitting these milestones each week for weeks 1 through 6. You will revise these milestones and submit your Final Project in Week 7.
- Papers should be15or more written pages in length, 10-point font, and double spaced. The papershould include a cover page, table of contents, introduction, body of the report, summary or conclusion, and works cited, graphs, and tables. These items are not part of the total page count.
- Even though this is not a scientific-type writing assignment and is mostly creative in nature, references are still very important. At least six authoritative, outside references are required (anonymous authors or web pages are not acceptable). These should be listed on the last page titled "Works Cited."
- Appropriate citations are required utilizing the APA standard.
- All DeVry University policies are in effect, including the plagiarism policy.
- Any questions about this paper may be discussed in the weekly discussion topic.
- This paper is worth 210 total points and will be graded on quality of research topic and paper information, use of citations, grammar, and sentence structure. See the grading rubric below.
Milestones and Final Project
- Milestone 1: Company Background:(20 points) This section should include what industry the firm is in, its products, its competitors, and the stated main reason for needing capital (to fund receivables, capacity expansion, retire older debt, etc.).
- Milestone 2: Balance Sheets:(20 points) What did the balance sheet look like in the quarter just prior to issuing the bonds? Include both a copy from before the issue and after the issue. Calculate at least five of the ratios shown in the Moody's Bond Rating Chart contained in the Week 2 Lesson both before and after the bonds were issued, and discuss why you think they are important to your report.
- Milestone 3: Trends in YTM and Price:(20 points) At what price and YTM was the initial offering sold? Tabulate the price and YTM of the issue at the end of each calendar quarter for the last six quarters. Then, plot the tabulated values to visualize the trends in YTM and prices.
- Milestone 4: Purpose of the Offering and Leverage:(20 points) What was the planned use of the funds raised? If youcan't find a specific discussion about that, then use your judgment as to why you think the funds were needed and explain your reasoning. Calculate the financial leverage before and after the offering.
- Milestone 5: Rate of Return:(20 points) If you were one of the original investors in this issue and you had invested $10,000, what would your total return be if you sold the securities at today's market price? Compute the duration of the bond and its convexity currently. Add a brief discussion about your calculations.
- Milestone 6: Comparisons:(20 points) Identify and compare pre-offering EPS and total equity $ to the most current values. Compute the firm's current WACC assuming the total debt of the firm is in the issue that you analyzed. This means that if the company has more than one debt issue outstanding with a total face value of $X million and your chosen issue involves $Y million, then assume that all $X million is in your issue. This will simplify the calculations without diminishing learning value. Discuss at least three overall conclusions about this offering as a result of your research.
- Final Project:(210 points) Organize your project with a title page, table of contents, and reference list. Please construct a comprehensive introduction that lays out your project. In your conclusion, please recap your analysis sothat areader can draw upon your expertise in order to make an educated investment decision. This is the section to draw together all that you have researched and analyzed. Assemble and revise, if necessary, all of your milestone work to incorporate into the Final Project. The chapters should flow from one to another to ensure continuity. The reader should gain valuable information and conclusions from your work. After this section, please give your opinion about the value of this project to your overall learning experience in this course. Constructive comments, both positive and negative, are appreciated. Discuss at least two characteristics about this project that enhanced your learning experience. Please edit your report so that it is something that makes you proud.
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