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Valuation Project You work in the corporate finance department of your company. Your manager let's you know that the company has excess cash after
Valuation Project You work in the corporate finance department of your company. Your manager let's you know that the company has excess cash after dividend payments that it wants to invest for the next five years. Management wants you to assess 2 opportunities that they feel give them a good chance of growing their capital over the next 5 years but will also be fairly liquid incase cash is needed. Please assess Tesla (TSLA) and Apple (AAPL). Management wants an analysis of these 2 opportunities and what you think will be the best investment for the next 5 years. They will use your analysis and recommendation when making a final decision. Please prepare a paper that shows which investment you would recommend to your manager and why. Some notes: - The paper does not have to be 15 pages. It is a max of 15 pages. - Please do both a quantitative and qualitative analysis. This is very important in financial decision making. There is no right or wrong answer. This is an opportunity to do a quantitative (financial) analysis of 2 opportunities as well as do a qualitative (market sentiment, market assessment) analysis of each. - Look at their products, the annual report, what they have coming up. - Use the valuation methods we have learned so far (one more to come in class). - You can use Porters five forces to help with the qualitative side. - What is the company's competitive advantage? Why have they been so strong? Will they continue to be?
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