Description
Imagine that you are a financial manager researching investments for your client. Use the Strayer Learning Resource Center to 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. (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.)
The assignment covers the following topics:
- Rationale for choosing the company in which to invest
- Ratio analysis
- Stock price analysis
- Recommendations
Refer to the following resources to assist with completing your assignment: Stock Selection
Market and Company Information
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Write a ten to fifteen (10-15) page paper in which you:
- Provide a rationale for the stock that you selected, indicating the significant economic, financial, and other factors that led you to consider this stock.
- Suggest the primary reasons why the selected stock is a suitable investment for your client. Include a description of your client’s profile.
- 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.)
- 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.
- Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, material from the Strayer Learning Resource Center, and reviews by market analysts.
- Use at least five (5) 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.
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.
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Explanation & Answer
Attached.
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Running Head: FINANCIAL RESEARCH PAPER
Financial Research Paper
Student Name:
Course/Number:
Due Date:
Faculty Name:
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FINANCIAL RESEARCH PAPER
Stock Selection
Apple, Inc. is headquartered in Apple Campus, Cupertino, California, US. It is a
multinational organization that plans, creates, makes and markets consumer gadgets, PC
equipment, and PC programming and gives online services. The products of the organization are
sold worldwide and the organization has a global presence. The organization is known for its
creative products and continues making general developments in its products. Apple is the most
productive organization on the planet and is likewise the biggest innovation organization of
world by resources. The organization was established on April 1, 1976, by Steve Jobs, Steve
Wozniak and Ronald Wayne. It was joined in January 1977 as Apple Computers, Inc. and
renamed as Apple, Inc. in January 2007 demonstrating its concentration to consumer electronics.
The organization runs 478 apple stores in different nations around the world. Arthur D.
Levinson is the Chairman of the Apple, Inc.; Tim Cook is its Chief Executive Officer. The CFO
of the organization is Luca Maestri. Apple, Inc. turned into the main organization of United
States to be esteemed above $700 billion amid the year 2015. The organization has a high client
base and its items have high brand loyalty. Inter brand Best Global Brands pronounced Apple as
the most profitable brand of the world and esteemed it at $118.90 billion. The organization has
more than 115,000 employees in different areas around the globe. Ticker symbol of Apple, Inc.
is AAPL and its stock is part of Dow Jones Industrial Average, S and P 500, S&P 100 and
NASDAQ 100. Movie producer, Inc. Apple Energy LLC, Anobit and Braeburn Capital are the
different auxiliary organizations of Apple, Inc.
Income of Apple, Inc. was $215.639 billion during the financial year finished September
24, 2016, with a gross margin of $84.263 billion. The operating and net income reported in the
financial statement is $60.024 billion and $45.687 billion amid that year. The cash assets are
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FINANCIAL RESEARCH PAPER
more than $237 billion and it is said that it has more cash than US treasury. The total assets of
the company are $321.636 billion and its shareholder's equity was $128.249 billion toward the
end of the financial year September 24, 2016.
The share value of Apple stock is checked from the NASDAQ stock exchange and the
trends are studied for the last 6 years and bases upon on the value of stock it can be concluded
that the selection of Apple stock is beneficial for investors (NASDAQ, 2017). The stock price is
increased when compared from 2010 to 2016. The stock price recorded for 2016 is $115.82.
Apple Inc. YEAR Stock Value Summary
Year
Stock Value at 30 Dec
2016
115.82
2015
107.32
2014
112.52
2013
79.22
2012
76.02
2011
57.86
2010
46.24
Rationale
The Apple, Inc. is an innovative organization that makes various electronics gadgets. It
has a demonstrated reputation and appreciates a high reputation. With the end goal of
recommending the stock to the investors, I have reviewed other innovation organizations and in
addition retail, oil, pharmaceutical organizations. In my examination, the most reasonable
organization that matches project needs and objectives of the financial investors is Apple, Inc.
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FINANCIAL RESEARCH PAPER
The organization is from technology segment however dissimilar to other innovative
organizations it proclaims customary profit to its stockholders. The other profitable companies,
for instance, Google, Amazon.com, and Facebook don't announce any profit to its investors.
With the end goal of suggestion, I have thoroughly analyzed the financial statement of the
company from 2013 to 2016 and it can be concluded that the income and ...