No More Worries!

image Our orders are delivered strictly on time without delay

Paper Formatting

  • Double or single-spaced
  • 1-inch margin
  • 12 Font Arial or Times New Roman
  • 300 words per page

No Lateness!

image Our orders are delivered strictly on time without delay

Our Guarantees

image

  • Free Unlimited revisions
  • Guaranteed Privacy
  • Money Return guarantee
  • Plagiarism Free Writing

Many investment banks employ analysts

Many investment banks employ analysts to write equity research reports on public companies to advise their clients on their stock investments. In many cases, an initial equity research report is 20 to 50 pages long! For this class, you will focus on only three of the many important sections typically included in an equity research report. Thankfully, your Mini Equity Research Report will be much shorter than those published by investment banks!

In Week 1, you chose a publicly traded company to use throughout this class for the Mini Equity Research Report. In the first section of the Mini Equity Research Report, you evaluate the historical financial performance of the company (Week 1). In the second section of the Mini Equity Research Report, you evaluate the company’s performance using common financial ratios, and you compare the company to the competitor’s performance with the same financial ratios (Week 2). Finally, in Sections 3 and 4 of the report, you develop a value for the company’s stock and compare your value to the current market price of the stock (Weeks 3 and 4). Based on the analysis you present in these four sections, you will develop your recommendation to buy, hold, or sell the stock of this company.

It is very rare for one company to have only positive facts. Most companies have some good facts and some weak facts. In Sections 1 and 2 of the Mini Equity Research Report, you will analyze a variety of financial data for your selected company. As the equity analyst, it is your responsibility to combine the positive and negative facts into one recommendation (buy, hold, or sell). It is important to consider the importance of each fact and acknowledge that there is no perfect answer. Your recommendation should be based on the strength of the positive facts while recognizing the risks from the negative facts.

This week, you will write the introduction (including your stock recommendation) and the conclusion of the Mini Equity Research Report. In addition, you will revise the four sections from the first four weeks of class and combine them into this Mini Equity Research Report. Finally, you will submit your final Appendices A, B, C, and D with the Mini Equity Research Report.

Prepare:

Prior to beginning work on this final project,

Complete the Week 5 – Learning Activity: Understanding Cost of Capital.
Review the feedback you have received on your assignments throughout this course.
Locate and revise (if necessary) all of your assignments from Weeks 1 through 4.

Write:

In your Mini Equity Research Report,

Write an introduction. In your introduction, include the following:
State the name of the company and a brief description of what it does.
State the current market price per share and total market capitalization of the company.
State two key historical financial performance facts about your company (you can ascertain this information from your Week 1 – Assignment 3, Section 1: Financial Statement Analysis).
Categorize the overall financial performance as strong, neutral, or weak.
Justify your assessment based on the key facts.
Summarize (briefly) the ratio performance of the company.
Categorize the overall ratio performance as strong, neutral, or weak.
Justify your assessment based on the key facts.
Determine the valuation conclusion based on the constant growth formula in Week 4, using the required rate of return derived from the CAPM.
Determine your recommendation of buy, hold, or sell the stock of your chosen company.
Include your revised Week 1 – Assignment 3, Section 1: Financial Statement Analysis.
Include your revised Week 2 – Assignment 3, Section 2: Financial Ratio Analysis.
Include your revised Week 3 – Assignment, Section 3: Dividend Analysis and Preliminary Valuation, Part 1: Dividend Analysis only
Include your revised Week 4 – Assignment, Section 4: Valuation Conclusion.
Write a conclusion. In your conclusion, include the following:
Summarize the analysis that was completed for the Mini Equity Research Report.
State your recommendation of buy, hold, or sell the stock of your chosen company.
Summarize the key facts supporting your recommendation, including your concluded stock price.

Sample Solution

“It is critical to be clear as to exactly why the internationally diversified portfolio opportunity set is of lower expected risk than comparable domestic portfolios. The gains arise directly from the introduction of additional securities and/or portfolios which are of less than perfect correlation with the securities and portfolios within the domestic opportunity set” (IPTD, no date). It is important to understand a few decades ago it was stated that cross border correlation was low (Grubel, 1968), yet the speed of change in globalisation through information technology and a more connected world, has resulted in more positively correlated stockmarkets between the developed nations. “The level of correlation between the UK and US market is now so high that the usefulness of independent analysis of the larger-cap UK market indices must now be moot” (Eckett, 2013). Campbell and Ammer (1993) find that news about future excess returns is the dominating force behind movements in US stock returns, with news about future dividends and real interest rates being less important. Raddant (2016) noted that following Brexit, the four largest markets were positively correlated. There are more opportunities for negative correlation in developing European countries which serve local rather than global markets. Masuduzzaman (2012), argues that there are short and long term relationships between the UK and Germany markets. Cook (2013) notes the close correlation in the main indices could be explained by medium to large companies being more globally focused and having to rely on international markets. Opportunities for diversification could therefore lie amongst European smaller companies. Typically, this will serve local markets and should therefore not be influenced by political and economic events cross border. The article also highlights that the US, being a larger expanse of land and cultures can shrug of the need to rely on foreign revenues.
PLACE AN ORDER NOW

Price Calculator

Subject:
Type:
Pages/Words:
Single spaced
approx 275 words per page
Urgency:
Level:
Currency:
Total Cost:

12% Discount

image

  • Research Paper Writing
  • Essay Writing
  • Dissertation Writing
  • Thesis Writing

Why Choose Us

image

  • Money Return guarantee
  • Guaranteed Privacy
  • Written by Professionals
  • Paper Written from Scratch
  • Timely Deliveries
  • Free Amendments