Overview: Company Description Your first task of this week is to select and reserve the company you wish to research. With few exceptions, you may choose any publicly traded company: • that is headquartered in the U.S. • that has been publicly traded for at least five years • that is not a bank, financial services company, insurance company, or real estate investment trust (REIT) as the ratios used to evaluate financial institutions are beyond the scope of this course. Once you have selected a company, post a new thread in the discussion topic with the name of the company in the subject. Each student is required to choose a different company. When you have finished reserving your company, find the company’s most recent 10-K report. There are two ways to do this: • Option 1: Go to the Securities and Exchange Commission’s website. Use the Filings tab to find the report. If you need assistance, there is a short video about how to use the site. • Option 2: Use the 10-K report posted on the company’s website. From the company’s home page, look for a link for Investors, then select SEC filings, and limit the search of SEC documents to “annual.” Select the most recent 10-K filing. Take care not to select the 10-Q as it is a quarterly report. Your second task is to prepare a report with the required information provided below. Use the same heading names (in bold) before presenting the information as requested. Take care to write your report in third person (as a reporter) rather than in first person (as a company employee). Recommended Resources: • 10-K Report, Item 1 • The Yahoo! Finance website Report Headings Name of Company and Ticker Symbol: Company name (ticker symbol) 10-K Report: Paste the direct URL to the company’s most recent 10-K Report Company Website: Paste the URL to the company’s website Company Business Model: Review Item 1 of the 10-K report to find the following information: • Short Description of Business: What does the company do? What are its key sources of revenue? • Product Mix: Identify the company’s product mix or key segments. Briefly describe each product line/segment. Include brand names if possible Stock Price Data: use the Yahoo! Finance website to find the information required. 5-Year Stock Price Graph: Provide a screenshot of the data (Learn how to do this on a MAC or PC) Although the screen shot tool does not work with the Yahoo interactive graph, the snipping tool does. Please view this video for directions on how to snip the graph so that you can paste it into your post for Discussion 1. Stock Price Data: Use the interactive chart on the Yahoo! Finance page, and use your cursor to find the highest price point and lowest price point in the last 52 weeks. The date the price was hit will be at the bottom of the graph on the horizontal axis. Dividend Data: Does the company pay a dividend? How often, and how much have the last few dividend payments been? Evaluation: Share what you learn from the data and information collected for this discussion. Does the stock price graph provide evidence of management’s ability to maximize shareholder wealth? Does the company pay a dividend, and how does the answer to that impact the larger ‘shareholder wealth maximization’ discussion? What is your impression of the company thus far? Sufficiently examining the data and information collected will likely require at least 250 words. 1 Running Head: AT&T INC. AT&T Inc. Name Date Institution 2 AT&T INC. AT&T Inc. NYSE: T 10-K Report: https://last10k.com/sec-filings/t#link_fullReport Company Website: https://www.att.com/ Short Description of Business: AT&T Inc. is a global provider of media, telecommunications, and technology services. The services provided different use platforms of technology depending on geographical location. The key sources of revenue for the company include subscription fees paid by clients, advertising arrangements made through its networks, and content where AT&T licenses originally owned programming to subscriptions. Product Mix AT&T Inc. has four main segments; communications, Latin America, WarnerMedia, and Xandr. The company’s communication segment provides communication services globally and, in 2019, resulted in 76% of the segment's revenue. This segment contains; business wireline business units, mobility, and entertainment group. The WarnerMedia comprises of globally leading media and entertainment, and other media content. This resulted in 18% of the total segment revenues in 2019. In this segment, Home Box Office, Turner, and Warner Bros. business units and HBO Max steaming platform are included. The third segment is Latin America, which serves Latin America and Mexico with entertainment services. Latin America provided around 4% of the total segment revenue in 2019. AT&T INC. 3 There are the Vrio business units (Video entertainment services) and Mexico (Mexico wireless networks) under this segment. The fourth segment is Xandr, which relies on customer data to develop advertisements fitting consumers, both digital and video. This segment resulted in about 1% of the total segment revenue. 5-Year Stock Price Graph: Stock Price Data: Highest price 11/18/2019 Lowest Price 3/23/2019. Dividend Data: AT&T INC. 4 AT&T Pays dividends to its shareholders, and it is paid out quarterly (3-4 months) and annually. In 2020, there have been three payments, the first being on 01/09/2020, which was 0.52 dollars. The second was on 04/08/2020, which was 0.52 dollars. The most recent was on 07/09/2020 and still o.52 dollars. The annual dividend was 2.08 dollars, which was due on 07/09/2020. Evaluation: As a tech company, AT&T Inc. seems to be on the rise. From the dividends paid, the company pays its dividends to shareholders and seems to be a low-risk company to invest in. However, there are risks involved, such as the fact that its value is currently falling. For the past year, the company shows a loss in value continuously and hence no ability to maximize an investor's wealth. AT&T Inc. pays dividends to its shareholders annually and quarterly, which helps the investors increase their wealth. Since 2019, there has been a slight increase in the number of dividends issued to shareholders quarterly. If this continues, investors are likely to increase their wealth with very low risks involved. Currently, the annual dividend paid yielded 6.92% per share. However, the returns are likely to be way less than high-risk companies, and hence the AT&T shares are likely to be fine for people who are conservative and afraid of high risks. Despite the current drop in value, AT&T Inc. is likely to improve in value soon. As a tech company, it has a higher chance of improving value due to increased subscriptions and services worldwide. Also, technology advancement is likely to favor the company giving it a chance to amass shareholders' wealth in the future. But currently, the AT&T company results indicate that AT&T INC. 5 the company has minimal ability to increase the wealth of investors. Also, the current returns and loss of value are likely to discourage potential investors.
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