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i need this project done by the end of the day if possible Project 2: Look at Value Line's website and choose one company from
i need this project done by the end of the day if possible
Project 2: Look at Value Line's website and choose one company from the 30 stocks of the Dow Jones Industrial Average. Scroll down and click on the PDF file for your firm. Print out the Value Line report (1 page.) Notice how the financial statement data and ratios help forecast the value of a firm. Use a highlighter pen to show the past ten years and the estimate of the future two years of: 1 Total sales (omit if your co. is a bank) 7. ROE 2 EPS 8. Recent stock price 3 Dividends per share (actual in $) 9. P/E 4 Income tax rate 10. Net income 5 Market Cap 11. Beta 6 Working Capital (is it NWC or CA?) 12. Dividend yield in % On a separate page type the most current number for each of the 12 pieces of information above and explain why the data are important. For example, 1 - I chose Johnson & Johnson. Its sales were $70,074,000,000. That's $70.074 billion. Sales revenue is important because the managers base their forecasts for costs, AFN, accounts receivable etc. on expected sales. If sales are rising over the years, that's good. If profits went up but sales are going down, that's not good because it means that profits went up from cost cutting. 2 -EPS was $5.48/share. It is important because we can estimate the value of stock using the P/E ratio approach. Also, comparing EPS this year to previous years we can see that it was high and then EPS declined. 3 - Dividends per share are an important because analysts use it to estimate the value of stock based on the discounted dividend theory where: V= div1/(1+k)n +g It tells us the dollar amount of dividends that the company actually distributed. It's not always the same as dividends declared. You'll find it in the lower left hand box. It was $2.95. Some companies don't pay dividends. Then, the amount is zero. This is not the same as dividend yield, which is annual dividend/current price and is in percent form Follow my example for each of the 12 financial items for the company that you selected. (Some companies don't have all of the 12 items listed above. For example, a bank stock doesn't show sales revenue. So, if the performance measures don't apply, just highlight the ones that DO apply.) Then, write why you recommend this stock to 'buy' 'hold' or 'sell,' Buy means that investors who have extra money should buy his stock because the stock price is likely to go up. Hold means that if the investor already owns the stock they shouldn't buy more or sell any of it. Sell means that if the investor owns the stock they should sell it because it's likely to go down in priceStep by Step Solution
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