Students will download documents from the SEC EDGAR (electronic data gathering and analysis) database (www.sec.gov), including the most recent: Quarterly report (Form 10-Q) Proxy statement (DEF-14A) Form 10-K Note that you only need the Executive Compensation table from the Proxy Statement (DEF 14A). Go to the Securities and Exchange Commission home page (www.sec.gov) select Search for Company Filings to go to the EDGAR database. Select Search Companies and Filings and enter the company name. Do not use the companys ticker symbol. The SEC uses a Central Index Key (CIK) as a reference tool. 3. Students must use the internet to find the daily closing stock price and the number of shares traded for the common shares of their company and plot the last 12 months for both. A useful site is to obtain this information is: http://finance.yahoo.com. Select Chart and enter the ticker symbol in the symbol lookup. Select Historical Quotes: daily at the bottom of the page. The historical prices are shown, with an option to download to a spreadsheet at the bottom of the page. Download the daily closing prices and volume of shares traded into a spreadsheet (e.g. Excel). Use the graph function to plot the prices and shares traded each day into two charts. You may prepare in Excel or submit a screenshot of a chart you have found. Either is acceptable. 4. Students will answer a series of questions related to the company (further explanation below) 5. Students will write a 700 word memo to investors (further explanation below) 6. Summary of Items to Submit for Project: Answers to Questions 1-13 (provided below) Two charts: daily closing stock prices and number of shares traded each day for the last twelve months Memo to potential investors typewritten, single-spaced a link to the executive compensation table from the proxy statement a link to the most recent quarterly report (10-Q) financial statements a link to the Form10-K Project Questions: 1. Corporation information a. Name of corporation / Internet Address b. Principle product or service c. Stock market on which shares are traded d. Price of a common share on date of this project e. Number of shares traded on date of this project 2. Industry a. What is the chief industry of the firm? b. List a few competitors c. Do you consider the industry a growing or stagnant? Why? 3. Management information a. Name of chief executive officer (CEO) b. Name of chief financial officer (CFO) c. Compensation (salary and bonus) for most recent year for CEO 4. Quarterly Reports a. Balance Sheet date of quarterly report b. Year-to-date revenue c. Year-to-date income d. Year-to-date cash flow 5. Auditor information a. Name of audit firm b. Date of auditors report 6. Annual financial statement information a. Dates of financial statements (Balance Sheet dates) b. Number of years covered (Income Statements) 7. Analysis of the balance sheet a. Total assets ($) b. Total liabilities ($) c. Inventory flow assumption d. Depreciation method 8. Ratio analysis a. Primary (Basic) earnings per share b. Current ratio c. Working Capital d. Return on assets 9. Analysis of the cash flow statement a. Was there a net cash inflow or outflow? Include dollar amount. b. Where did the firm primarily spend cash? (give three examples) c. From where did this cash come? (give three examples) 10. Analysis of risk List some economy and industry-wide risk factors 11. Dividends Amount of any cash dividend (total cash paid, not per share) 12. International a. Does the firm have significant foreign sales? b. Does the firm have significant foreign suppliers? 13. Would you rate this company as a buy, sell or hold? 14. On a separate page, prepare a type-written memo to potential investors (approximately 700 words) summarizing your analysis of the firm. Be sure to support the position you take in question 13 with very specific financial and non-financial evidence. You may use the following assumptions when writing your memo: The reader does not know a lot about the company you are analyzing, so a brief explanation of the business would be helpful. The reader has a general but limited understanding of accounting and financial statement analysis therefore, when discussing ratios, etc. it would be beneficial to explain why you used a specific ratio or the purpose of the ratio, not how the ratio is calculated. The majority of the memo should focus on your analysis remember, analysis should provide insight, a list of numbers without explanation is meaningless e.g. ask yourselfWhat does this number mean? Why am I including this result in my memo? Is the result favorable? Unfavorable? In addition to content, you will be graded on your writing skills including grammar and appropriate language. Be sure to cite any resources used. Memo must be type-written, single-spaced