RESEARCH PAPER TOPIC GUIDELINES
Components:
This project consists of three major
activities:
1.
Conduct secondary research
(i.e. library, internet, etc)
2.
Write research paper computing
the financial ratios yourself.
3.
Make presentation to class.
The
Project to be addressed by the Paper:
You have just graduated froMBA program and
have secured a position as a fund manager for a well known investment banking house. You have been given $25 million to
manage/invest in a single stock. The fund is a pension/retirement fund so its
perspective is long term with moderate risk of loss of capital and a required
return of 9% per annum. Your assignment is to determine if the fund you are
managing should invest $25 million dollars in the stock of the company you have
selected for your first analysis/investment decision. Select a publicly traded
US based company.Do not select a bank or financial intermediary (i.e
Investment Bank, Insurance Company, Brokerage House etc). Your decision to
invest or not invest will be supported by the research paper and a Power Point
Presentation.
NOTE:
Most of the data needed for this assignment can be found in
Yahoo/finance. Go to Yahoo/finance,
select your company, and view the table of contents on the left side of the
page.
Your analysis, based on the concepts
covered in this course, will addresseach
of the following:
1.
Business Strategy Analysis: Develop an understanding of the business and
competitive strategies of the
company. Which of the three generic competitive
strategies does the company utilize (low cost provider, differentiation,
focus)? This should be covered in not more than three
paragraphs. Do not spend time
writing a history of the
company. This is an analysis, not a history
lesson.
2.
Accounting Analysis: Do the accounting practices adopted by the
company
generally
reflect an accurate picture of the economic performance of the
company? Did
your research find any public announcements of restatement of earnings or other
financial statements that would indicate that the financial statements may be
of dubious value? This can be done by
reviewing the company’s 8K filings with the SEC (a mandatory requirement for
this paper). These filings can
generally be found on the company’s website under Investor Relations – SEC
filings.
3.
Financial Analysis: Analyze financial ratios and cash flow
measures of the
company relative to its historical performance. For purposes of this research paper a 2 year
look back is sufficient and required. You must use at least 10 of the ratios
noted on page 119 of the text including all four of the profitability ratios.
4.
Prospective Analysis: Develop forecasted performance measures and
list the
assumptions
associated with your forecast. List your
assumptions and reasons for your forecast.
You may also cite the works of other analysts who have published
forecasted earnings for the time frame you are addressing. (Hint:
take a look at Yahoo/finance – analysts opinion
5.
Conclusion:Will you or will you not
invest $25 million in this particular
Company? Support your conclusion? Remember a negative conclusion is just as
valid and valuable as a positive conclusion.
Writing
the Paper:
The following are general guidelines for
format and organization.
1.
Format:
a.
Minimum of ten pages (including
self prepared exhibits), with numbered
pages. No binders please.
b.
Typed, double spaced.
c.
New Times Roman (i.e. business)
font, 12 point.
d.
Margins – 1.25 inches.
e.
Include boldface headings and
subheadings.
f.
Note source citations as
appropriate under APA guideline.
2.
Organization:
a.
Cover page – Name of paper,
your name, course number and name, date
submitted.
b.
Introduction – A brief
statement of the purpose of the paper and
explanation of
its organization. You are welcome to use
pseudonyms for the name of the company or individuals addressed in the paper.
c.
Analysis -Address four concepts
noted in “The Paper etc” on the preceding page.
d.
Summary – A brief statement
combining the finding arising from the analysis.
e.
Conclusion/Recommendations –
should you invest or not invest the $25 million and why or why not.
