The Term Project is your last major submission of this course and it is also the most complex. In addition to the guidance provided in the curse materials I would like to submit for your consideration, a few additional tips on how to "write " term project.

Content Reqiorements

Let me "explain" by the numbers:

Term Project:The instructions with regard to the content this Project are quite explicit and should be sufficient; particularly the suggested outline. However, let me expand and give you a few tips:

After you have selected an Industry get at least two firms within that industry, one of which is the firm you choose, to evaluate, ths target.

In addition obtain two (2) years of financial data for each firm. A good place to go for such data is the Form 10X, this this form must be filed annually to the Secuiries and Exchange Commission (SEC).

Calculate the ratios and determine in what direction, Forum # 1, (DF-1), the firm is moving with respect to its finances (i.e.: increasing debt or shedding debt).

Determine which ratios are most important to that industry and compare them with the each other and make some speculations as to how your firm is performing. For example product turnover is important to the Fast Food Industry.

Look at the two (2) firms financial operations to see if they are extinguishing or taking on new debt and why. Recollect Discussion Form # 2 (DF-2).

Make sure you discuss the firmsLong Term and Short Term Goalsin terms of the data you collected and generated. This is a required element of this Project.

From the data you collected and analyzed determine or discuss what the firmsOptimal Cost of Capital Structureshould be or indicate how these figure or charts could be found and put together. This topic is well covered in Chapter # 21 and 22. Again this is a required element of this Project.

Financial Statements, which include Balance Sheet, Income Statement, Statement of cash flows, etc, represent the type of material needed in this section. Not only present these statements but point out significant events and what they mean. This is also a required element of this project,

Cost of Capitalis a critical factor needed to run a business. A business person labors hard to reduce the firm's Cost of Capital to optimum. This topic was well covered in Work Assignment # 6. This topic is also a required element this Project.

We studiedPresent Valueextensively in the . earlier part of the book after it was introduced in Chapter # 7. It is a recurring topic throughout the rest of the text which, indicates to the reader that the subject MUST be important to financial analysts. For example you, as a financial analyst, have been tasked to value a firm which the owners desire to sell. The firm has a lot of assets that can easily valued. There are some buildings and land. What is not so easy to find is the value of the new contracts they have secured, the value of work in process (WIP), The value of inventory needed to complete WIP and the new potential contracts. Accordingly, I have to determine the Present Value (PV) of these items plus what ever GOOD WILL the firm may possess.

Finally based upon all this information make a educated speculation as to how your firm compares to its competitors and possibly its industry writ large.