Submit a single Word document addressing all the questions below and a single excel sheet that contains supporting calculations for all the companies covered by the group
AL OF 5 COMPANIES IN THE ANALYSIS
Submit a single Word document addressing all the questions below and a single excel sheet that contains supporting calculations for all the companies covered by the group to the course website (do not email me the assignment). Make sure to include all the names of your group members on the Word document.This assignment is worth 80 points. Each question below is worth 15 points (75 points total for correctly answering the questions). There are 5 points for the organization, clarity, and professionalism of your writeup.Download the most recent 10-k statement for all the companies from the SEC website and recent price data from your favorite financial website (e.g. Yahoo! Finance). Answer the following questions Questions:
1. Perform ratio analysis to learn how the firms performed over time and relative to one another. Make Sure to include at least one ratio from the following categories: liquidity, asset management, debt management, profitability, and market value. Discuss the ratios and highlight any trends. Based on the ratio analysis, which company is most attractive and why? I suggest you create a table summarizing this information for all the companies covered by your group and include it in the word document.
2. What is the risk profile of the companies in your group? Which company is the riskiest?
(a) What is its cost of equity (CAPM) for each of the companies?
(b) According to the financial statements (management’s discussions in annual reports), what are the biggest risk factors facing the firms in your group? Please discuss these risk factors.
3. What return would you have earned investing in the companies in your group over the past decade(adjust the time frame depending on your company)? Which company had the best performance overall
and on a risk-adjusted basis? I suggest you summarize the information in a table and include it in the word document.
(a) Would you have under or out performed the market by investing in these companies?
(b) What is your opinion on how these firms perform in the next decade or your recommended investment horizon?
4. How have these companies returned cash to their owners (e.g. dividends or buy backs)? If so, how much and for how long? Will pattern continue? If the companies do not currently pay back its investors,when do you expect they will start?
5. What is the overall recommendation to the fund manager? Should the manager invest in all, some or none of the companies analyzed by your group and why?
I have attached the instructions as well as a sample template
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