Due Week 8 and worth 240 points
Imagine that you are looking for a company in which to invest. Use the Internet or Strayer Library to research a U.S. publicly traded company, its operations, locations, markets, and lines of business (Note: The company you research must be different from the company that you had selected in Assignment 1). Collect financial statements for the past fiscal or calendar year.
Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. The collected financial statements from the company must include at least one (1) income statement and one (1) balance sheet. You will create an appendix, in which you will insert related information.
The assignment covers the following topics:
Company Overview
Capital budgeting analysis
Compiling an investment portfolio
Weighted Average Cost of Capital (WACC)
Recommendations
Write a six to eight (6-8) page paper in which you:
Provide a detailed overview of the selected U.S. publicly traded company.
Create a pro forma balance sheet and income statement in order to forecast the next year of the company’s financial data. Base your projections on the historical data within the company’s current financial statements.
Choose any three (3) capital budgeting techniques that you have learned about in the text. Analyze your forecasted data and chosen capital budgeting techniques. Determine the company’s financial health. (Note: Suggested techniques may include, but are not limited to, payback, net present value, and internal rate of return.)
Recommend one (1) mutual fund from any mutual fund family for which you believe your investment would be a perfect fit. Analyze the risk and historical return of the recommended mutual fund. Defend your recommendation.
Analyze the firm’s WACC over the past year. Determine the firm’s optimal capital structure. Provide a rationale for your response.
Provide your recommendations of the selected stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles or materials from the Strayer Library.
Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
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