Group Project Paper & Powerpoint
Overview
This project is a way for you to apply financial management principles to real companies in real time. You will work on this assignment during the entire semester and will be given class time to work on the various sections and have time to meet with your instructor for progress updates. You will also be expected to meet with your group outside of class. The final products for this project are:
1. Group paper using the outline for required sections for your paper due on Pages 10-11 of the syllabus.
2. Group Presentation with PowerPoint (with everyone in your group presenting at least one slide). The presentation should include 10 slides including the title slide (one for each section that you covered in your paper). Every group will present during our final exam session on Dec 16th starting at 9:30am.
Sections of Your Paper
I. Cover Page
II. Introduction
III. Historical Stock Price & Trading Information
IV. Stock Price Tracking
V. Corporate Governance Analysis
VI. Stockholder Analysis
VII. Ratio Analysis
VIII. Capital Structure
IX. Investment Return
X. Conclusion & Recommendation
Detail for Paper Sections
Cover Page
- Title of project, industry, and team member names
Introduction
- Provide a one paragraph overview of the industry or group of companies as a whole and list the types of companies that are part of this.
- Provide one paragraph (each team member must write a paragraph on their specific company). How long has your company been in business? Is your company small, large, profitable, unprofitable?
Historical Stock Price & Trading Information
- On which exchange is each company’s stock traded?
- What has been the historical stock price range over the last 52 weeks (52-week trading range)? Make sure everyone in your group is looking up the 52-week trading range on the same day. Present the stock price range in a chart comparing each of your companies’ trading ranges.
Stock Price Tracking
- What does each company’s stock price look like during the course? Present the closing prices graphically on each company’s prices you have been tracking since class began.
Corporate Governance Analysis*
- Who runs the company? Who is part of the top management?
(CEO, CFO, President, etc.) - Who monitors these managers?
(Board of Directors, regulatory authorities, bondholders, banks, lenders, rating companies, etc.) - Are there any conflicts of interest with managers, board of directors, etc.?
(Does the CEO serve as chairman of the board, etc.) - Who is on the board?
(Ages, backgrounds, etc.) - How effective is the board? How often does it meet?
(Look at news stories, other documents about decisions the board has made or accomplishments).* Most of this information can be found on the company website and/or www.SEC.gov (Links to an external site.) website, Form DEF 14A
Stockholder Analysis
- What is the breakdown of stockholders in your firm – insiders, individuals, and institutional?
Ratio Analysis
- Do an analysis of the company’s Financial Statements (found at SEC.gov (Links to an external site.) 10K and 10Q) using ratio analysis. Select at least one ratio from each of the four categories (liquidity, leverage/solvency, asset management, and profitability) for 2 different years (2019 and 2020). Put into plain terms whether the company performed better in 2020 or 2019. What are the main reason(s) for the improved or deteriorated financial performance?
Capital Structure
- How does the company finance the organization? What percentage of long-term debt and equity does it use? How much (if any) dividends did the company pay in the last year? Have there been any changes to the capital structure over the two years (new stock shares, new bonds, etc.)
Investment Return
- If you had purchased 100 shares of your company five years ago, discuss the following:
- What would your gain or loss be in terms of dollars?
- What would your gain or loss be in terms of a percentage?
- If you invest the gains/proceeds from your stock today at a 10% rate of interest, what will it be worth in 10 years. Use Time Value of Money and rate of return concepts to calculate this. [Note: If you have a loss in Parts a/b, use the same amount and ignore the negative sign for this portion of the section.]
Conclusion & Recommendation
- Of all the companies researched by your group, which company does your group recommend as the best investment? Why does your group make this recommendation?
Group Project Grading Rubric – 200 Points Possible
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Below Average |
Average |
Exceptional |
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Content (20%) |
Does not demonstrate comprehension of content in reading and/or offers irrelevant write up of company. |
Demonstrates limited comprehension of content in reading and/or offers superficial writing. |
Demonstrates mastery of core content in research and offers thoughtful insight |
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Analysis (20%) |
There is little analysis of the individual companies; there is more summary than specific analysis supported by numbers. |
Adequate analysis is present but is simplistic or superficial. |
Clear and effective analysis with supporting evidence to address all major points made. |
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Format & Organization (20%) |
Overall format does not flow well or is disjointed. |
Organization is haphazard and overall flow is somewhat disjointed. Relationships among ideas are sometimes clear but conveyed inconsistently. |
Overall format and organization is excellent. Relationships among ideas are assisted by transitions and logical progression from one concept to the next. |
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Presentation (20%) |
There is little preparation, detail is missing from the presentation, and PowerPoint slides have multiple errors and/or are missing key information. |
Preparation is adequate, minimal detail is provided, PowerPoint slides have minor errors, or some information is missing. |
Presenters are well prepared to present and answer questions, speak clearly and deliver information in a coherent manner, PowerPoint slides are visually appealing and error free. |
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Grammar, Punctuation & Spelling (20%) |
Errors in grammar, spelling, mechanics distract or interfere with understanding. |
A small number of errors in grammar, spelling and mechanics do not distract from the overall effectiveness of the paper. |
Paper is free of errors, in mechanics, spelling, and grammar. (34 – 40 points) |
Rubric
Group Project
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Group Project |
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Criteria |
Ratings |
Pts |
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This criterion is linked to a Learning OutcomeContent |
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40 pts |
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This criterion is linked to a Learning OutcomeAnalysis |
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40 pts |
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This criterion is linked to a Learning OutcomeFormat & Organization |
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40 pts |
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This criterion is linked to a Learning OutcomePresentation |
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40 pts |
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This criterion is linked to a Learning OutcomeGrammar, Punctuation, & Spelling |
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40 pts |
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Total Points: 200 |
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