30 Jun Question Description I just want to revise my own paper. My professor have been given me some guidelines about that. I also take photos and I can post it to you by uploading.
Question Description
I just want to revise my own paper. My professor have been given me some guidelines about that. I also take photos and I can post it to you by uploading.
Please follow the requirement in the rubric and the guidelines from my professor to correct that.
Tags: management Company Protfolio
3-1 Final Project Milestone One: Company Profile
301778144669768069.jpg
3-1 Final Project Milestone One: Company Profile
356411201215023324.jpg
3-1 Final Project Milestone One: Company Profile
477663571064187014.jpg
3-1 Final Project Milestone One: Company Profile
538206295817482725.jpg
3-1 Final Project Milestone One: Company Profile
301778144669768069.jpg
3-1 Final Project Milestone One: Company Profile
477663571064187014.jpg
fin640_milestone1_guidelines_and_rubric.pdf
milestone_one_revised_cheng_qu.docx
fin640_portfolio_analysis_template_2.2.xlsx
Unformatted Attachment Preview
FIN 640 Milestone One Guidelines and Rubric Overview: For your final project, the CEO has asked you, the new investment manager of XYZ Tech Company, to produce an investment analysis report describing how to invest the firm’s cash and cash equivalents in the financial markets. You will prepare an investment analysis report for the company, which will include a portfolio analysis template that you will use to outline how you will invest the cash in selected public corporations. Finally, your reasons behind your investment strategies should be noted in an executive summary. For this first milestone, due in Module Three, you will submit your company profile. Using the investment parameters for XYZ Tech Company along with your own financial database research, you will fill in the portfolio analysis template and write a 2- to 3-page paper outlining the securities that your company will invest in to create a well-diversified investment portfolio. You will analyze each company and its performance in the financial markets over the past five years, include a company valuation for each firm, and identify stakeholders in the company. Prompt: First, visit Morningstar to retrieve stock and bond information for each of the following companies: Apple, Inc. (AAPL) Caterpillar (CAT) Consolidated Edison (ED) Northern Trust (NTRS) Macy’s (M) Next, using the portfolio analysis template, provide the specified data to explain the company’s growth period (revenues, earnings market share, etc.). Finally, in a 2- to 3-page paper, discuss the five-year history of each company by visiting the respective websites and databases covering the firm and industry. The paper should briefly discuss the products and services produced by each company that were major contributors to the company’s success. It should also discuss each company’s strengths given the competitive nature of the industry. Based on the financial items and key ratios of the company that you have researched, include a brief discussion of the company’s valuation. (Hint: The Key Ratios on the Morningstar website list competition and industry ratios and could be downloaded directly into Excel for easier comparison.) You should also identify the key stakeholders, particularly common stakeholders, in the company. Specifically, you must address the following critical elements: I. Company and Market Analysis: In this section, you will analyze the company and its position in the financial markets. A. Financial Markets i. Analyze the five-year performance of the domestic economy relative to the financial markets (using the portfolio analysis template). ii. Explain specific market performance data based on compiled asset valuation model inputs supported by database research of five-year sector and industry performance and current trends. iii. Evaluate the impact of the five-year and current macroeconomic data on asset prices. B. Company Valuation i. Analyze the company’s financial items and key ratios for a comparison to peers and industry (using the portfolio analysis template). ii. Determine the intrinsic value of assets by inputting data into the various asset valuation models. D. Stakeholders i. Identify five key stakeholders and their needs in relation to the company’s portfolio. ii. Identify the common stockholders’ primary objective and their required return on equity. Refer to your text readings and other course resources to support your responses. In Milestones Two and Three, and for the final project submission, you will be using the portfolio analysis template that you have prepared in this milestone. Be sure to refer back to this (and update and revise it as necessary) as you continue your work throughout the course. You should also be monitoring the portfolio’s performance on a daily basis and reading the financial periodicals provided among the course resources to stay current with your investments. Be sure to apply instructor feedback on this milestone to your final project. Rubric Guidelines for Submission: Submit both your completed portfolio analysis template and company profile. The written component of this milestone should be submitted as a Word document, 2–3 pages in length, double-spaced, using 12-point Times New Roman font, one-inch margins, and the latest edition of the APA manual for formatting and citations. Please note that the grading rubric for this milestone submission is not identical to that of the final project. The Final Project Rubric will include an additional “Exemplary” category that provides guidance as to how you can go above and beyond “Proficient” in your final submission. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Financial Markets: Domestic Economy Proficient (100%) Analyzes the five-year performance of the domestic economy relative to the financial markets Financial Markets: Asset Valuation Model Inputs Explains specific market performance data based on compiled asset valuation model inputs supported by database research of five-year sector and industry performance and current trends Financial Markets: Macroeconomic Data Evaluates the impact of the fiveyear and current macroeconomic data on asset prices Company Valuation: Financial Items and Key Ratios Analyzes the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry Needs Improvement (75%) Analyzes the five-year performance of the domestic economy relative to the financial markets, but analysis is cursory or contains inaccuracies Explains specific market performance data based on compiled asset valuation model inputs, but explanation is cursory, is not supported by database research of five-year sector and industry performance and current trends, or contains inaccuracies Evaluates the impact of the fiveyear and current macroeconomic data on asset prices, but evaluation is cursory or contains inaccuracies Analyzes the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry, but analysis is cursory, comparison is incomplete, or response contains inaccuracies Not Evident (0%) Does not analyze the performance of the domestic economy Value 13 Does not explain specific market performance data based on compiled asset valuation model inputs 13 Does not evaluate the impact of the macroeconomic data on asset prices 13 Does not analyze the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry 13 Company Valuation: Intrinsic Value Stakeholders: Key Stakeholders Determines the intrinsic value of assets by inputting data into the various asset valuation models and explains how each model was applied Identifies five key stakeholders and their needs in relation to the company’s portfolio Stakeholders: Common Stockholders Identifies the common stockholders’ primary objective and their required return on equity Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Determines the intrinsic value of assets by inputting data into the various asset valuation models, but determination contains inaccuracies, or asset valuation models are not used correctly, or lacks explanation Identifies key stakeholders and their needs in relation to the company’s portfolio, but does not identify five stakeholders, needs are inappropriately identified in relation to the portfolio, or response contains inaccuracies Identifies the common stockholders’ primary objective and their required return on equity, but identification is inaccurate or does not take into account either the objective or return on equity Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not determine the intrinsic value of assets 13 Does not identify key stakeholders and their needs in relation to the company’s portfolio 13 Does not identify the common stockholders’ primary objective or their required return on equity 13 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 9 100% FIN-640 1 Milestone One (Revised) Dr. Shaikh A. Hamid Cheng Qu October 18, 2017 FIN-640 2 Question: Analyzing each company this time and I did only do APPL last time. Financial markets Five year performance of domestic economy Apple is a global design and sales firm of mobile and media equipment. Understanding the performance of domestic economy, it has been less uniform with considerable fluctuations (Apple Inc, 2017). On the other hand, Caterpillar is a company dealing with mining and construction machines based out of America and it has seen a decline in the income and returns. Edison is a joint company into holdings and a slight increase in the revenue can be seen. Similar to Edison, Northern Trust is also a financial holding company that has seen gradual increase in income. Messi is a chain of retail stores that has seen a decline lately. Market performance Apple has minimized its investments and also purchase of intangibles. This has given scope for increase in stock value and share price. It is a sad state with respect to Caterpillar’s performance since the market has rapidly affected the business with trade rates. ED and Northern Trust performed quite similarly and their market performances were carefully decided so that they don’t end in losses. Debts, stocks and other market fluctuations have affected the market performance of Messi. FIN-640 3 Impact and current macroeconomic data It is essential to understand the present macroeconomic data and impacts. ED and Northern Trust have positive impacts in the productivity, interest rate, stock value and exchange rate. Messi, Caterpillar and Apple do not have positive impacts. Company valuation Financial items and key ratios Upon evaluating the financial report of Apple as per 30 Sep 2016, the profit margin has touched 21.19% out of which Apple will gain 21.19% of sales and this should be allotted to the shareholders. This implies that the profit margin is quite high. The debt asset turnover has been set to 0.6 and this is above the industry average of 0.5 (Reuters.com, 2017). Therefore, it could be said that there is high leverage of its assets. Current ratio is also a key ratio of Apple. It is marked as 1.35 and this is shown as a good sign as Apple can efficiently deal with debts at this stage. The efficiency ratio of Apple has seen a gradual rise in efficiency and is at 27.59% which implies strong efficiency. The key ratios have notified the deteriorating health of the firm in the recent annual report. In the case of Caterpillar, it has recorded low debt/ assets ratio at 0.49 while the industry average is 0.52. The current assets are far lesser at 1.22 when compared to 2.05. Edison has performed well in its financial health ratios. For instance, the equity ratio is 1.11 while industry average is 0.93. The same case applies to cash flow ratio. FIN-640 4 Similar to Edison, Northern Trust has also achieved a rise in debt equity ratio at 0.92 when industry average is 0.65. The debt asset margin is 0.07 which is 70% and 20% lesser than the industry average. This is a fair ratio. Messi has recorded low ratios when compared to industry average. Intrinsic value of assets The net turnover of assets belonging to Apple Inc was 0.7 times. This also implies that the turnover is less for a $0.7 USD invested (Apple Inc, 2017). This is below average and cannot be treated as an effective option. Looking into the financial health of the assets, the accounts received have been low and the inventory efficiency is also low. The total assets possessed by Apple Inc have come to as low as 33.22% as on Sep 2016 (Reuters.com, 2017). This is again instructing a poor financial health of the firm. The net current liabilities have been under control. The turnover from fixed asset is 8.75 and this is also low when compared with the market ratios. The analysis shows that the intrinsic value of such assets is low. The fixed asset values of Northern Trust and Edison are lesser and have experienced fluctuations. Caterpillar has seen a decrease in the asset value and cash flow has also deteriorated. The asset value of ED is moderate and Northern Trust has an increase in possession of assets. Fluctuations are high in Messi similar to Caterpillar. FIN-640 5 Stakeholders 5 key stakeholders There are 5 major stakeholders associated with the firm and they directly influence the development of firm. These are given below. Stakeholders Needs based on portfolio Apple Value addition XYZ tech company Increase in investments and value of cash equivalents Government Income tax Financial Industry regulatory authority Securities market regulations Bank Profit growth All the major stakeholders are keen about the financial growth and performance of the firm that can add benefits to them (Apple Inc, 2017). Since Apple is a technology company that has gained global sales and recognition, these stakeholders play critical roles in the operations. These stakeholders apply for other companies too. The financial holding companies like Northern Trust and Edison have customers as stakeholders and other companies that act as investors. Companies like Messi and Caterpillar have third party companies as their investors and they look forward for better cash equivalents. FIN-640 6 Common stockholders The objective of common stockholders of the firms is to maximize the return on investments from the firm. Apple has numerous stockholders and the financial performance has a direct impact on the stock value and this demands the firm to focus on the financial development. To determine the necessary rate of return, the following formula is applied: ri= rf + βi * (Rmkt – rf ) Elements Input data Risk free rate rf 2% Company’s beta βi 1.28 Market premium Rmkt – rf 6% Applying the values as in table to the formula above, the rate of return is 2% + 1.28*6% = 9.68% FIN-640 7 References Apple Inc (2017). Morningstar. Retrieved 18 October, 2017 fromhttp://www.morningstar.com/stocks/XBUE/AAPL/quote.html Reuters.com. (2017). Company Profile: Apple Inc. (M.N). Retrieved 18 October, 2017, from http://www.reuters.com/finance/stocks/companyProfile?symbol=M.N Apple (AAPL) Stock 2016 2017 2018 2019 2020 2021 Revenues Cost of Goods Sold Selling, General & Administrative Expenses Research and development Operating Income Net Interest Expenditure Pre-Tax Income Taxes Net Income 215639 224265 233235 242565 252267 262358 131376 156985 163265 169795 176587 183650 14194 38125 39650 41236 41624 43289 10045 0 0 0 0 0 60024 29154 30321 31533.4 34056 35418 -1348 0 0 0 0 0 61372 29154 30321 31533.4 34056 35418 15685 8746.3 9096.2 9460.02 10217 10625 45687 20408 21224 22073.4 23839 24793 Earnings Per Share 8.3067 3.7106 5500 5500 Shares Outstanding 3.859 4.01334 5500 5500 Apple (AAPL) Bond Firm Debt & Coverage Ratios Debt/Assets Debt/Equity Current Assets/Current Liability EBITDA/Interest Debt/EBITDA Cash Flow Ops/Total Debt 0.6013 0.68 1.35 43.15 0.32 0.27 Ind Avg 0.5 0.47 24.46 0.28 0.22 4.3344 4.5078 5500 5500 Growth Profitability and Financial Ratios for Apple Inc Financials Revenue USD Mil Gross Margin % Operating Income USD Mil Operating Margin % Net Income USD Mil Earnings Per Share USD Dividends USD Payout Ratio % * Shares Mil Book Value Per Share * USD Operating Cash Flow USD Mil Cap Spending USD Mil Free Cash Flow USD Mil Free Cash Flow Per Share * USD Working Capital USD Mil Key Ratios -> Profitability Margins % of Sales Revenue COGS Gross Margin SG&A R&D Other Operating Margin Net Int Inc & Other EBT Margin Profitability Tax Rate % Net Margin % Asset Turnover (Average) Return on Assets % Financial Leverage (Average) Return on Equity % Return on Invested Capital % Interest Coverage 2007-09 2008-09 2009-09 2010-09 2011-09 24,578 37,491 42,905 65,225 108,249 33.2 35.2 40.1 39.4 40.5 4,407 8,327 11,740 18,385 33,790 17.9 22.2 27.4 28.2 31.2 3,495 6,119 8,235 14,013 25,922 0.56 0.97 1.3 2.16 3.95 6,225 2.2 5,470 -986 4,484 0.63 12,657 6,315 3.39 9,596 -1,199 8,397 1.33 20,598 6,349 5.02 10,159 -1,213 8,946 1.41 20,049 6,473 7.45 18,595 -2,121 16,474 2.54 20,956 6,557 11.78 37,529 -7,452 30,077 4.59 17,018 2007-09 2008-09 2009-09 2010-09 2011-09 100 100 100 100 100 66.83 64.8 59.86 60.62 59.52 33.17 35.2 40.14 39.38 40.48 12.06 10.03 9.67 8.46 7.02 3.18 2.96 3.11 2.73 2.24 17.93 2.44 20.37 22.21 1.65 23.86 27.36 0.76 28.12 28.19 0.24 28.42 31.22 0.38 31.6 2007-09 2008-09 2009-09 2010-09 2011-09 30.19 29.89 31.75 24.42 24.22 14.56 14.88 19.19 21.48 23.95 1.13 1 0.99 1.06 1.13 16.43 14.89 18.92 22.84 27.07 1.74 1.88 1.5 1.57 1.52 28.52 27.19 31.27 35.28 41.67 24.84 27.19 30.22 34.69 41.04 Key Ratios -> Growth 2007-09 2008-09 2009-09 2010-09 2011-09 Revenue % Year over Year 3-Year Average 5-Year Average 24.29 42.6 33.12 35.3 32.6 39.23 32.1 30.48 38.97 52.02 39.54 36.17 65.96 49.37 41.16 10-Year Average Operating Income % Year over Year 3-Year Average 5-Year Average 10-Year Average Net Income % Year over Year 3-Year Average 5-Year Average 10-Year Average EPS % Year over Year 3-Year Average 5-Year Average 10-Year Average Key Ratios -> Cash Flow Cash Flow Ratios Operating Cash Flow Growth % YOY Free Cash Flow Growth % YOY Cap Ex as a % of Sales Free Cash Flow/Sales % Free Cash Flow/Net Income Key Ratios -> Financial Health Balance Sheet Items (in %) Cash & Short-Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Net PP&E Intangibles Other Long-Term Assets Total Assets Accounts Payable Short-Term Debt Taxes Payable Accrued Liabilities Other Short-Term Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities Total Stockholders’ Equity Total Liabilities & Equity 12.99 18.52 21.47 23.37 35.05 79.74 138.25 203.93 42.32 56.09 56.6 60.96 61.96 42.78 83.79 75.28 68.97 37.44 87.09 68.52 104.78 41.73 75.77 133.11 121.89 38.27 53.56 133.93 31.65 70.36 60.57 97.22 29.92 70.16 58.85 60.03 33.39 84.99 75.03 67.11 73.13 122.87 112.83 36.39 50.9 124.02 26.15 69.4 58.74 91.24 25.97 66.85 56.8 57.56 30.11 82.71 72.85 64.9 2007-09 2008-09 2009-09 2010-09 2011-09 146.4 75.43 5.87 83.04 101.82 186.88 87.27 6.54 84.15 82.57 4.01 3.2 2.83 3.25 6.88 18.24 22.4 20.85 25.26 27.79 1.28 1.37 1.09 1.18 1.16 2007-09 2008-09 2009-09 2010-09 2011-09 60.7 61.89 49.4 34.08 22.3 15.9 11.89 10.65 13.2 10.07 1.37 1.29 0.96 1.4 0.67 8.66 12.6 5.43 6.76 5.62 86.62 87.66 66.43 55.44 38.66 7.23 6.2 6.22 6.34 6.68 1.66 1.24 1.18 1.44 3.81 4.49 4.89 26.17 36.78 50.85 100 100 100 100 100 19.61 13.95 11.79 15.98 12.57 4.97 12.11 36.69 9.4 12.26 35.61 0.91 7.2 4.32 24.22 0.28 6.45 4.85 27.56 0.98 6.97 3.52 24.04 5.98 42.67 57.33 100 11.25 46.86 53.14 100 9.17 33.39 66.61 100 8.87 36.43 63.57 100 10.13 34.16 65.84 100 Liquidity/Financial Health Current Ratio Quick Ratio Financial Leverage Debt/Equity Key Ratios -> Efficiency Ratios Efficiency Days Sales Outstanding Days Inventory Payables Period Cash Conversion Cycle Receivables Turnover Inventory Turnover Fixed Assets Turnover Asset Turnover 2007-09 2008-09 2009-09 2010-09 2011-09 2.36 2.46 2.74 2.01 1.61 2.09 2.07 2.48 1.72 1.35 1.74 1.88 1.5 1.57 1.52 2007-09 2008-09 2009-09 2010-09 2011-09 21.96 22.81 24.6 24.82 18.34 7.09 7.31 6.85 6.95 5.17 96.25 89.74 79.02 81.3 75.48 -67.19 -59.61 -47.58 -49.53 -51.96 16.62 16 14.84 14.71 19.9 51.47 49.9 53.28 52.51 70.53 15.42 15.15 15.86 16.89 17.26 1.13 1 0.99 1.06 1.13 2012-09 20 …
Purchase answer to see full attachment
Studypool values your privacy. Only questions posted as Public are visible on our website.
Tutor Answer
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.