The Research Paper Assignment Is Worth 220 Points Or 22%

The research paper assignment is worth 220 points or 22% of the course grade. A grade of C or better is required as per MBA policy as this is the final assessment for the course. The objectives/purpose of the research paper project are to enable you to do a comprehensive financial analysis of a publicly traded corporation; and provide you with substantial information for you to make recommendations regarding investing in this corporation. Your financial analysis report will be driven by a rigorous ratio analysis, and aggressively supplemented with your written analysis, interpretation, and evaluation of the data. Your research should be strategically driven by two probing questions: -Would you invest your financial capital in the selected firm as a shareholder? -Would you invest your human and intellectual capital in the firm as an employee?

Paper For Above instruction

The research paper requires an in-depth financial analysis of a publicly traded company, specifically General Motors, and a comparison with its primary competitor, Ford Motor Company. The analysis should encompass data over the past five years, utilizing financial statements such as the income statement, balance sheet, cash flow statement, and statement of owners’ equity. You must obtain these from annual reports and SEC filings like 8-K and 10-Q to ensure comprehensive data collection.

The core of your analysis involves calculating and interpreting key financial ratios across five diagnostic categories: liquidity, long-term debt-paying ability, profitability, asset utilization/management efficiency, and market measures. You are expected to calculate 2-3 ratios per category, totaling 15 ratios per company. Your report must include comparative tables showing these ratios side by side for General Motors, Ford, and industry averages, with proper APA citations of all data sources.

Additionally, you should analyze key statistics from financial information sources such as Yahoo Finance—like market value, beta, and earnings per share—to evaluate the corporation’s investment potential. Forecasting future stock prices is essential; employ methods such as regression analysis or moving averages on five years’ worth of monthly historical prices. Include a graph showing historical data and your forecast, and critically assess the reasonableness of your forecast, adjusting your model if necessary.

The report should also incorporate qualitative information affecting the company’s future, such as dividend policy, capital structure, credit ratings, industry outlook, legal issues, and strategic initiatives. Using reputable sources, present a well-rounded view of factors that could influence future performance and stock valuation.

Finally, based on your quantitative analysis and qualitative insights, provide a clear investment recommendation—whether to buy, hold, or sell the stock. Justify your recommendation thoroughly, referencing your data analysis, industry understanding, and market conditions.

References

  • Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. John Wiley & Sons.
  • Graham, B. & Dodd, D. L. (2008). Security Analysis: Sixth Edition, Foreword by Warren Buffett. McGraw-Hill Education.
  • Penman, S. H. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
  • White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. John Wiley & Sons.
  • Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3-56.
  • Yahoo Finance. (2024). Stock Data for General Motors and Ford. Retrieved from https://finance.yahoo.com
  • SEC Edgar Filings. (2024). Annual Reports, 10-Q, 8-K Filings. Retrieved from https://www.sec.gov/edgar/searchedgar/companysearch.html
  • Wikipedia contributors. (2024). Ford Motor Company. In Wikipedia, The Free Encyclopedia. Retrieved from https://en.wikipedia.org/wiki/Ford_Motor_Company
  • Investopedia. (2023). Financial Ratios. Retrieved from https://www.investopedia.com/terms/f/financialratio.asp
  • Bloomberg. (2024). Financial Data and Analytics for Publicly Traded Companies. Retrieved from https://www.bloomberg.com

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