Part B: Discussion of risks. You will search Fords form 10K and identify three major risks identified by the company. You will also assess the companys market share for the automotive segment. You will determine the companys growth rate.

Requirements:

Step 1: From the form 10K, item 1A, identify three (3) major risks identified by the company you consider most important.

1. Read the form 10K item 1A.

2. Identify three major risks you consider most important to the companys future.

3. Calculate the companys Beta coefficient of the stock. From any of the websites listed in the directions, how does your calculation compare?

4. Share your conclusions with your classmates in Discussion 2.2.

Step 2: From the form 10K, review item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations. Assess the companys market share.

1. Read the form 10K, item 7, Management discussion and analysis of financial Condition and Results of Operations.

2. Locate information about production volume of cars and market share.

3. Explain if the companys market share for automobiles increased or decreased over the past year. You may look at other sources to support managements position.

4. Share your research with your classmates in Discussion 2.2.

Step 3: Calculate the companys growth rate of EPS or dividends. Compare your calculation with publicly-available information from any of the websites listed in the directions.

1. Calculate the growth rate of the companys EPS or dividends using the formula presented in the text.

2. Compare your result to publicly-available rates. Use one of the websites listed in Part A.

3. Share your calculation and research with your classmates in Discussion 2.2. Provide and explanation if your calculations differ from your classmates or publicly-available information.

Step 4: Summarize your findings in a word document. Add to the document You started on Part A. Your final submission will include the results from part A - D.

Part D: Discussion of Free Cash Flow. You will determine Fords consolidated free cash flow. In this part, you will make a prediction as to what the companys stock price would be in three (3) months. You will also review analysts estimates and predictions for the past year.

Requirements:

Step 1: Look at Fords Consolidated Statement of Cash Flows. Note the operating cash flow section is found in Note 25.

Step 2: Calculate the free cash flow. Share your calculations with your classmates in Discussion 4.2.

Step 3: Compare your answer to any of the websites listed in the directions. Share your research with your classmates in Discussion 4.2.

Step 4: Make your prediction as to what the stock price will be 3 months from now. Share your predictions with your classmates in Discussion 4.2.

Step 5: Add to the document you started on Part A. Your final submission will include the results from part A - D.