FOLLOW THE DIRECTIONS CAREFULLY. THE COMPANY IS COCA COLA COMPANY. I have attached an example of the project to use as a guideline. You should follow that guideline as closely as possible. I have also attached all the first two homework assignments that were meant to go into the project. I did not do so well on these but the professor provided some feedback so you can see what he is looking for. There are four more that I will attach after because the site would not let me attach anymore. If you are not experienced in cooperate finance do not accept this assignment.
BSAD 350 FINAL PROJECTS FOR COCA COLA COMPANY
Final project – due on Monday, May 6, 2019
DIRECTIONS: You will be analyzing a public company.Your report must be professional and meet the criteria specified below.
The project is worth 240 points.This is a formal report and should be professional looking and have correct grammar and spelling.
Technical Requirements (35 pts)
LATE PAPERS ARE UNACCEPTABLE.
Your cover page must contain the following information:
COMPANY NAME (3 pts)
Student Name
Fall 2018
Dr. Christopher M. Scalzo
BSAD 350-01
Due Date
Company History (10 pts)
You will need to complete a one-page summary of the company background that includes some basic history and background, operations, management, and industry. This section may not be any longer that one (1) page and you can bullet point some information, if appropriate. Cite this section!
Current Events (10 pts)
You will need to complete a one-page summary (minimum of four (4) current events) that occurred over the last most recent year.The current events need to affect the company in a significant way, not dividend payouts, industry changes, or competitor changes/moves.The event must include the date first, then one sentence discussing the event, and the last sentence discussing the impact on the company.This section may not be any longer that one (1) page and you can bullet point the information.Cite each article!
SAMPLE CURRENT EVENT WRITEUP
(2/2/14) The company issued $150MM in 10-year debt securities at 6.25% under a $400MM shelf registration. This borrowing will repay commercial paper credit lines originally used for various acquisitions.
Current Management (15 pts)
You will need a one-page discussion on the top three company executives.There should be a discussion of the each person background, compensation package and position within the firm.Lastly, you should provide analysis of the information and decide if the management team is appropriate for the firm and can lead the firm forward.This section may not be any longer that one (1) page. Cite this section!
Current Economic Environment (10 pts)
You will need a one-page discussion on the economic health (i.e. GDP, Unemployment, Consumer Confidence, Inflation, and any other statistic that applies to your company) of the United States in one paragraph and the industry (i.e. PEST analysis, growth, Industry size, Porter analysis, and the top three (3) competitors) your company participates in in a second paragraph.This section may not be any longer that one (1) page. Cite this section!
Current Banking Relationship (10 pts)
You will need to determine and create a table that contains the: (a) current total credit limits for each line, (b) outstanding debt on those credit facilities, and (c) interest rates on each facility.In addition, you will need to include (d) information on the equity securities, (e) additional debt borrowings and (f) the overall debt rating for the company as noted by Moody’s, S&P and/or Fitch in a written paragraph.You will need to use the Notes to the Financial Statements for your company in the latest 10-K in the short- or long-term borrowings or debt. Cite this section!
Financial Statement Analysis (105 pts)
Complete and include three (3) separate tables on profitability, asset efficiency, and liquidity and leverage.The table and analysis must reflect five (5) years of numbers with Industry Averages and all ratios needed to complete a thorough analysis.The table similar to the one in the ratio spreadsheet should include only relevant ratios and Industry Averages that will help in presenting your company for investing (i.e. follow guideline from prior assignment).You must complete a one to two paragraph analysis of the numbers presented in each table directly after the table (i.e. there should be a table and then paragraph for three tables and three to six paragraphs) based on actual analysis from the annual 10-k. The analysis should not contain elevator analysis (i.e. describing how a number moves based on the numbers in the ratio) or a description of ratios. In addition, you must attach the final spreadsheets to this analysis as support for this section.The spreadsheets must be from this semester and if not, this section will not receive any points.
Investment Decision and support (45 pts)
You are an investor who has $10,000,000 to invest in you company.Your job is to determine if you are willing to put all your money or make no investment.You will need to support this decision by determing if you would or would not invest in your chosen company with support from the financial analysis and outside information.You will need to include four (4) ratios that support you case and two (2) ratios that provide an opposing viewpoint.In addition to the one page analysis, you will complete the following calculations to back up your decision and show your work:
- Valuation of two (2) different bonds & Explanation;
- Valuation of the stock with two (2) different methods (one must be DCF) & Explanation for difference in actual price; and
- Weighted Average Cost of Capital by determining the optimal capital structure with an explanation including Cost of Debt and Cost of Equity using CAPM.
References page is needed at the end of the report in APA format.
WEBSITES
Yahoo Finance – http://finance.yahoo.com/
Morningstar – com/Cover/Funds.aspx”>http://www.morningstar.com/Cover/Funds.aspx
MSN Money – http://money.msn.com/
Securities and Exchange – http://www.sec.gov/
Federal Statistics – http://fedstats.gov/
New York Stock Exchange – https://www.nyse.com/listings_directory/bond
NAICS and SIC Codes – http://www.naics.com/search/
Interest Rates – http://www.bankrate.com/rates/interest-rates/prime-rate.aspx
Industry Analysis Websites – http://www.library.auckland.ac.nz/subject-guides/bus/execprog/online-guides/industry-analysis.htm
Industry Analysis Example – http://www.unc.edu/~neilson/inls227/IndustryAnalysis.htm
Industry Research Guide – http://www.csuchico.edu/~wdiamond/classes/mgmtindustryanalysis.htm
Industry Analysis – http://www.winninginvesting.com/sector.htm
MSC Library – Business Insight:Essentials
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