Obtain a understanding of the financial process by studying public information
Subject: Business / Finance Question
Select an industry within the selected industry to complete a analysis. Develop a well-written paper focusing on fundamental research. The goal is to obtain a understanding of the financial process by studying public information and market data to make investment decisions.
Course Project Requirements: Your Project consists of valuing a firm using fundamental and analyses and presenting your recommendation. Your course project will consist of a 7-8 page paper following APA format and will include at least graphic (refer to the line chart under technical below). The project should include a title page, introduction, analysis, graphic(s), conclusion, and reference page.
Fundamental Analysis: You will prepare a top-down fundamental analysis that covers economic, industry, company, and financial analysis (Chapters 5, 6, 7, 8). The analysis should parallel the type of analysis conducted by a professional security analyst (although not with the same degree of rigor).
Economic analysis (Chapter 5): Your paper must cover monetary-fiscal policy, government policy, economic indicators, gross domestic product growth (GDP), unemployment, and any trade and events that are currently affecting the securities markets.
Industry analysis (Chapter 6): Your paper cover the life-cycle phase your chosen industry is in, the of such, and the industry structure (including but not limited to economic factors, factors, and government regulation).
Company/financial analysis (Chapters 7 and 8): Choose a specific company within your chosen industry in which you like to invest. Value the using a dividend valuation, an earnings model, and the P/E ratio. Forecast earnings per share for the next two years. Using the most recent two of financial statements (annual report or 10-k), perform a ratio analysis using the 20 ratios in Chapter 8. (You do not need to calculate these ratios, but must properly cite sources.) The analysis should comment on the most recent year’s ratios and any trends between the two years, in addition to research industry norms for the, asset-utilization, liquidity, debt-utilization, and price ratios, and analyze your selected firm’s against the industry.
Technical analysis: (Chapter 10) Using one of readily available charting resources on the Internet, prepare a line chart on the price and volume movement. Discuss the overall movement of the stock price and relationship of the stock to volume. Using a straight line of best fit through the data, comment on the stock that you project for the future.
Investment recommendation: Based upon the and technical analysis, present your investment recommendation, tying the results and data from fundamental and technical analysis and supporting your recommendation with your results and data.