Financial Management , business and finance homework help

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Business Finance

Description

Imagine that you are a financial manager researching investments for your client. Research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your client’s investment goals.

The assignment covers the following topics:

  • Rationale for choosing the company for which to invest
  • Ratio analysis 
  • Stock price analysis
  • Recommendations

Write a ten to fifteen (10-15) page paper in which you:

  1. Provide a rationale for the stock that you selected, indicating the significant economic, financial, and other factors that led you to consider this stock.
  2. Suggest the primary reasons why the selected stock is a suitable investment for your client. Include a description of your client’s profile.
  3. Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the selected financial ratios for the company; you may obtain this information from the company’s financial statements. Determine the company’s financial health. (Note: Suggested ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)
  4. Based on your financial review, determine the risk level of the stock from your investor’s point of view. Indicate key strategies that you may use in order to minimize these perceived risks.
  5. Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, and reviews by market analysts.
  6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.

The specific course learning outcomes associated with this assignment are:

  • Critique financial management strategies that support business operations in various market environments.
  • Analyze financial statements for key ratios, cash flow positions, and taxation effects.
  • Review fixed income strategies using time value of money concept, bond valuation methods, and interest rate calculations.
  • Estimate the risk and return on financial investments.
  • Apply financial management options to corporate finance.
  • Determine the cost of capital and how to maximize returns.
  • Formulate cash flow analysis for capital projects including project risks and returns.
  • Evaluate how corporate valuation and forecasting affect financial management.
  • Analyze how capital structure decision-making practices impact financial management.
  • Use technology and information resources to research issues in financial management.
  • Write clearly and concisely about financial management using proper writing mechanics.

Include a description of your client’s profile means:

In summary, client's profile is creating the background of your client. For example, your client is Cash who is an entrepreneur with a successful business and has a great education and investment portfolio but is skeptical on investment decision due to the financial crash and previous bad investment outcomes. Therefore, since Cash is your client, you should be able to convince Cash to invest in the stock that you have chosen. Since you are familiar with Cash’s history or background from what you will describe, you should be able to advise your client, Cash, on investment strategies. In other words, you are setting the stage for your client, whose name is Cash such as being smart, successful, rich, poor, young, at retirement age, afraid to invest, love investment, or whatever description your choose, etc.  Based on your client’s background, suggest the primary reasons why the selected stock (which is the company that you will choose such as Apple, etc.) is a suitable investment for your client. This is just an idea for you to set up your client’s profile.

Additional insight:

(Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.)

For the Appendix:

In the research report, at the bottom of your paper, include the Appendix which may consist of the Balance Sheet, Income Statement, Owners Equity and Statement of Cash Flows or information from item #3. Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the selected financial ratios for the company; you may obtain this information from the company’s financial statements that you have researched the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client.

The appendix, cover page, and the reference page are not included in the required assignment page length of ten to fifteen (10-15) page.


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Explanation & Answer

Here is the edited one and arranged

Running Head: APPLE’S INC, FINANCIAL MANAGMENT

Apple’s Inc. Financial Management
Ashley Foster
Dr. Ingrid P. Nelson
Financial Management (FIN 534)
September 5, 2016

1

APPLE’S INC, FINANCIAL MANAGMENT

2

Introduction
Apple, Inc offers products and services under iPhone, iPod, iPad, Apple Watch, Mac and
Apple TV brands. Apple also provides professional and consumer software applications under
OS, X, iOS and watchOS brands. Apple, Inc also produces operating systems under Apple Pay
brands and iCloud. The digital music revolution is led by Apple a with its iTunes online store
and iPods products. Recently Apple has introduced its magical iPad, which defines the future of
mobile media and to the upcoming computing devices. Apples mission is to continuous push on
its designs and Engineers and also to its competitors in making them improve the technological
world while it continues to be the computing and mobile device leader in all its products (Diehl,
2016).

Economic and Financial Consideration factors
Apple Inc. executive goal is focused on the compensation program that work towards
attraction and retaining of its talented, the entrepreneurial and towards having that creative team
for the executives who are capable of providing leadership success mostly for the company in
hand with its competitive market. Apple basically seeks to accomplish its main goals in all ways
that will align with its long-term interests for the shareholders. Apple’s has a Compensation
Committee oversees for its compensation programs that determines the executive officers
compensation. The company in general believes that the compensation program for the named
executive officers as an instrumental and helpful in achieving a strong financial performance in
the currently challenging macroeconomic environment.

APPLE’S INC, FINANCIAL MANAGMENT

3

This year, Apple has its quarterly revenue as $52 billion and the quarterly net profit as
$12.1 billion. This was $1.95 for the diluted share. Apples revenue for the current year is seen
have increased compare to last year’s total revenue which summed to $42.2 billion and net profit
as $8.5 billion represents $1.43 for its diluted share. This year’s gross margin was at 40%
compared to 39% of last year’s quart, see fig 1.4. Apple’s International sales account 64% of its
quarter revenue. Apple’s development got fueled by iPhone in its current fourth quarter sale
record, that also facilitated Apple Watch demand, and its own Mac’s record sales along with the
revenue from its services.
Each Apple’s named executive is considered a team member to the executive. Apple
expects its executives contribute together as team members to the overall success instead of
specifically achieving the mere objectives that are within its responsibility area. Apple prefers its
executive named officer being their own company employee for a period of 10years at least and
without an employee agreement or they has a severance arrangement (Grant, 2015).
The relevance of the total value of assets to a potential creditor or to businesses often
relies on its credits or loans to its launching or expansion. Lenders are required to have a look at
the business financials when the business does apply for credit or loans. In our case a bank will
look at the assets we do have when reviewing our credit worthiness. The creditor particularly
needs to be assured that the business has proven to be enough stable in taking the new debt
obligations as the common liquidity ratios will be used in the comparison of the assets and its
debts.

APPLE’S INC, FINANCIAL MANAGMENT

4

The report release recently contains the forward looking statement that has included the
limitations without the Apple’s estimated revenue, its operating expense, to the gross margin and
the tax rate of the expenses and the plan tax rate for the share repurchase of the dividends to the
public issuance debt. The actual results include the risk statement that is different from
uncer...


Anonymous
Really useful study material!

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