Financial Research Report

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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

  • U.S. Securities and Exchange Commission – “Market Structure
  • Yahoo! Finance
  • Mergent Online (Note: This resource is also available through the Strayer Learning Resource Center.)
  • Seeking Alpha (Note: Also available through the Android or iTunes App store.)
  • Morningstar (Note: You can create a no-cost Basic Access account.)
  • Research Hub, located in the left menu of your course in Blackboard.

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, material from the Strayer Learning Resource Center, 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.

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.

Student’s name:
Course name:
Course code:
Institution of affiliation:
Date of submission:

As a financial research manager, I choose to work on the Coca-Cola Company as an
example of a U.S. publicly traded company to research on its investments. This company is a big
brand as well as a profitable entity in the United States of America. My paper will examine the
rationale I used to select this company and will then analyze the profiles of the various investors
suitable in the potential investor venture techniques as a financial manager. The paper will
additionally elaborate on the financial performance of my selected company for a period of three
years plus conducting a ratio analysis to provide details of its financial analysis. Several
recommendations in reference to the company’s stock as a venture opportunity will also be
made.
Rationale Behind the Choice of This Company (Coca-Cola Company)

Being a financial manager, I would recommend this company as an investment venture to
many investors. The reasons why I chose Coca-Cola Company and also suggested to various
investors to venture into Coca-Cola Company are many. First and foremost, Coca-Cola is a
worldwide company and most importantly a celebrated brand on our planet (Msnmoney. (2014).
Currently the company offers its various products in as many as 200 countries across the globe.
This translates to over 1.8 billion refreshment item sales in the world market.

My second reason for selecting Coca- Cola is its rising financial performance as provided
in the table. This gives a strong basis for suggested the company as an investment venture. For
example, in the past couple of years, 10 years to be precise, Coca-Cola company’s sales, SBIT as
well as its net benefits attained a double figure. 2016 transaction is $46.85 billion that is double
of 2007 offers of $21.96 billion.

Coca- Cola Company Financial Performance Table for the Past 10 Years ( Msnmoney,
2016)

Note: All figures are in Billions

Coca-Cola 10-YEAR SUMMARY

Year

EBIT in

Total Net Income

dollars

in dollars

Sales in dollars

Earnings per share in dollars

2016

46.85

11.48

8.58

1.9

2015

48.02

11.81

9.02

1.97

2014

46.54

11.44

8.57

1.85

2013

35.12

14.24

11.81

2.53

2012

30.99

8.95

6.82

1.47

2011

31.94

7.44

5.81

1.24

2010

28.86

7.87

5.98

1.28

2009

24.09

6.58

5.08

1.08

2008

23.10

6.69

4.87

1.02

2007

21.96

6.22

4.85

1

My third reason for my choice of this company is its constant positive growth rate in its
stock’s value over a period of years now. I have a table that demonstrates the stock estimation of
this company towards the end of a financial year. It is clear that over the last 10 years, the stock

value of this company has constantly upgraded. For instance between the year 2007 and 2010,
Coca-Cola’s stock value expanded. From the table it is also evident that after the global
moneteary crisis of 2007, the company was able to achieve a high growth rate in the past 5 years.

Thus, due to the sustained increase in stock value and financial performance, I suggest
that investors should invest in this com...


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