Econ 135 Report 7 & 8 Marshall Data Presentation And Analysi

Econ 135 Report 7 & 8 Marshall Data Presentation and Analysis Guidelines

Econ 135 Report 7 & 8 Marshall report 7 is a 2-page presentation of data on your chosen company, based on data retrieved from the WRDS webpage and basic information from the 10-K report filed with the Securities and Exchange Commission. The first part of this report describes the data you will collect. The second part of the report gives you guidelines for presenting this data. Report 8 gives you guidelines for the analysis of your company’s data and additional research to understand your company’s stock performance. You will turn these two reports in together on Monday, Dec. 8, at the final exam.

Data Collection:

1. Obtain the following data from CRSP Monthly Stock data for the period from December to the most recent available date on the WRDS webpage. Data include: Company Name, Dividend Cash Amount, Price or Bid/Ask, Average Shares Outstanding, Cumulative Factors to Adjust Prices and Shares/Volumes. Adjust share prices and outstanding shares if cumulative factors are not 1, accounting for stock splits.

2. From the SEC website, locate your company’s 10-K reports for two recent years for which stock data is available. Use the "interactive data" feature to extract net income, total assets, and equity figures from the Consolidated Income Statement and Consolidated Balance Sheet to understand your company’s financial condition.

3. Also, acquire monthly S&P 500 price index and total return index data for the same period, provided in an Excel file.

Data Presentation Guidelines:

1. Prepare a normalized graph comparing your company’s monthly stock performance with the S&P 500, setting initial values to 1 for both series.

2. Create a graph displaying the company's annual dividend yield, calculated as total dividends paid divided by year-end stock price. If dividends were paid only in some years, indicate this; if none, then plot the annual rate of increase of the stock price.

3. Compile a table with the beginning and ending prices, and the annualized rate of return for the entire period and two sub-periods: Dec. 2006–June 2009 and July 2009–most recent date.

4. Construct a table with for each of the two years with SEC data: Market Capitalization (Shares Outstanding × Price), Total Equity, Tobin’s Q (Market Cap / Total Equity), Return on Assets (Net Income / Total Assets), Return on Equity (Net Income / Equity), and Leverage Ratio (Total Liabilities / Equity). Ensure units are consistent (e.g., millions of dollars).

5. Generate a table showing the two best and worst calendar years from 2007 to 2014 based on total return (including dividends). Use the formula HPR = (End Price + Dividends – Beginning Price) / Beginning Price, expressed as a percentage.

General presentation rules:

- All graphs should be neat with clear legends and axes titles.

- Returns are to be presented in percent with no unnecessary decimals.

- Dollar values should be in units that make sense for the scale (millions, billions).

- Label all figures and tables clearly with numbers and titles.

- Do not submit raw data; only well-organized, labeled graphs and tables.

Paper For Above instruction

Analysis and Presentation of Company Data for ECON 135

This paper provides an organized presentation and preliminary analysis of a selected company's financial and stock performance data, based on data collected from the CRSP database, SEC filings, and market indices. The objective is to examine the company's stock behavior relative to the S&P 500, assess its financial health, and identify notable features such as dividend payment patterns, valuation metrics like Tobin’s Q, and significant stock price changes over specified periods.

Introduction

The company chosen for this analysis is [Company Name], a prominent player in [industry], with a history spanning several decades. Through historical stock data and financial statements, this report aims to understand the company's performance during recent years, especially during economic downturns such as the 2008-2009 recession, and during subsequent recovery phases.

Data Collection and Presentation

The first step involved gathering monthly stock data from CRSP for the period from December [Year] to the most recent available month. Critical variables included stock prices, dividends, shares outstanding, and adjustment factors. Any stock splits identified by cumulative adjustment factors were used to recalibrate historical share prices and outstanding shares, ensuring consistency in the analysis.

Simultaneously, financial data from the SEC’s interactive data feature provided net income, total assets, and shareholders’ equity for the two most recent years with complete stock data. These figures enabled calculations of valuation metrics, such as Tobin’s Q, as well as profitability ratios like ROA and ROE, and leverage ratios.

Market index data for the S&P 500 total return and price index were incorporated to assess the stock’s relative performance over time. These indices were normalized to a value of 1 at the start of the period to facilitate meaningful comparisons with the company's stock performance.

Data Visualization and Interpretation

The line graph comparing normalized stock performance with the S&P 500 index reveals that [describe trend, e.g., the stock closely tracked the index or diverged significantly during certain periods, notably during the recession or recovery]. The dividends yield graph indicates that dividends were paid in [years], with notable increases or decreases potentially tied to company performance or strategic decisions.

The tabulated data summarizes the initial and final prices, with the calculated annualized returns showing [company’s overall return]. Breaking the period into two segments, from December 2006 to June 2009, and July 2009 to the present, highlights how the company fared during the recession and post-recession recovery, respectively.

The financial metrics table illustrates that the market capitalization for the recent year stood at [value], with total equity at [value]. The Tobin’s Q ratio of [value] suggests that the company was valued at [above/below] its replacement value, hinting at market expectations about growth or risk. The profitability ratios indicate [discuss ROA and ROE], while the leverage ratio shows that the company's debt levels were [high/low], influencing its financial stability.

An analysis of annual total returns from 2007 to 2014 uncovers the best and worst performing years: for example, the highest return in [Year], driven by [reason], and the lowest in [Year], possibly associated with [event]. For the S&P 500, similar computations illustrate market-wide reactions to economic events, with the data underscoring the company's relative resilience or vulnerability.

Key Findings and Conclusions

The company demonstrated [describe overall trend: resilience, volatility, growth, decline] over the examined period. During the recession, the stock experienced [significant declines or stability], with dividends temporarily halted or reduced, possibly reflecting strategic shifts or financial difficulties. Post-recession, the company's recovery aligned with market trends, with valuation multiples such as Tobin’s Q indicating [value]. The profitability ratios and leverage suggest that the company relied on [debt/equity] financing, influencing its risk profile.

Looking forward, based on recent trends and financial health indicators, the company seems poised for [growth/stagnation/uncertainty]. If current trajectories continue, projected stock returns for the next few years might be around [estimate], but external factors such as market conditions or industry changes could alter this outlook.

In conclusion, the data analysis highlights the company's strengths, vulnerabilities, and market perceptions, providing potential investors with an objective overview rooted in empirical evidence from stock performance and financial metrics.

References

• Fama, E. F., & French, K. R. (2004). The Capital Asset Pricing Model: Theory and Evidence. Journal of Economic Perspectives.
• Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. Journal of Finance.
• Brown, K. C., & Warner, J. B. (1980). Using Daily Stock Returns: The Case of Event Studies. Journal of Financial Economics.
• Barber, B. M., & Lyon, J. D. (1997). Detecting Abnormal Operating Performance: The Empirical Power and Specification of Test Statistics. Journal of Financial Economics.
• Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Financial Accounting. Wiley.
• SEC, EDGAR Database. (Year). https://www.sec.gov/edgar/searchedgar/companysearch.html
• CRSP Database Documentation. (Year). University of Chicago Press.
• Standard & Poor's, (Latest). S&P 500 Index Data. Retrieved from [source]
• Author, A. (Year). Title of the Market Index Report. Journal/Publisher.
• Additional credible source pertinent to the company's industry or recent performance.