business finance project - Business & Finance
please finish this business finance project in 5000 words.
Valuation Project
Fall 2021 - FIN 4220/6220
Due: November 16, 2021
Overview
The purpose of this project is for you to demonstrate critical thinking skills through the analysis of a publicly
traded company and the valuation of its common stock. This project contains two parts, a written report
and a valuation model. Each project must be completed on your own. Your subject company may be Tesla
(TSLA), Netflix (NFLX), or Costco (COST).
Written Report 70%
Each written report must contain the following sections. Section descriptions contain guidance for what
you should include but are not all inclusive. You may include additional information as appropriate. Each
section will be given the weight indicated. Section word counts are suggested minimums; the only hard and
fast word count requirement is the 5,000 word requirement described in “Other Requirements”.
1. Business Description (5%, 400 words)
Explain key facts about the company including its history, geographic footprint, major recent
news, and any other material facts or events.
2. Industry Overview and Competitive Positioning (15%, 850 words)
Discuss the firm’s industry. Identify the firm’s closest peers. Identify the firm’s competitive
position using Porter’s Five Forces analysis, SWOT analysis, or an alternative methodology.
3. Financial Analysis (15%, 750 words)
Examine the balance sheet, income statement, and statement of cashflows to understand the
overall financial health of the firm. Use financial ratio analysis to quantify profitability, liquidity,
debt management, and other key financial metrics. Analyze the firm’s capital structure. Calculate
the firm’s historical free cash flows. Identify recent capital raising or returning events. Compare
metrics across time and against the firm’s industry and peers.
4. Investment Risks (10%, 1000 words)
Discuss in detail the risks that an investor must consider if they were to purchase the company’s
stock. Consider the firm’s exposure to market, idiosyncratic, financial, operational, credit, liquid-
ity, regulatory, legal, tax, political, and other risks.
5. Corporate Governance (5%, 500 words)
Review the key players in the firm, including the CEO, CFO, COO, board of directors, or any
other important personnel. Do not simply recite the resumes of these individuals. Analyze the
quality of the firm’s corporate governance.
6. Valuation (15%, 1000 words)
Report the conclusions from your valuation model. You must give a detailed description of the
assumptions you made and why you made those assumptions. Discuss which technique(s) you
employed that are most appropriate for your firm. Arrive at a valuation for the firm and issue
guidance on the current value of the firm and a one year from now price target. Discuss your price
targets. Make a quantitative argument for why the stock is a buy, sell, or hold.
7. Investment Summary (5%, 500 words)
Concisely summarize your overall conclusions from the previous sections. Make a qualitative
argument for why the stock is a buy, sell, or hold.
1
Valuation Model 30%
Develop a valuation model for the firm using the sections described below. Use a single Excel workbook for
your results. Your model should include any data you used in your decision making process. The assumptions
you use in this model must be explained in your written report.
1. Cost of Capital (5%)
Estimate the firm’s cost of equity, cost of debt, and cost of preferred shares. Estimate the firm’s
weighted average cost of capital (WACC).
2. Dividend Discount Model (7%)
Value the firm using the dividend discount model with non-constant growth.
3. Relative Valuation (3%)
Value the firm using financial multiples, also known as relative valuation. Your reference multiples
should be pulled from the industry and peers you identified in the written portion of this project.
4. Discounted Cash Flow Analysis (10%)
Use the firm’s free cash flows to arrive at a value using the corporate valuation model with non-
constant growth .
5. Price Targets (5%)
Combine the results from the dividend discount model with non-constant growth, relative valua-
tion, and corporate valuation model with non-constant growth to produce a current value and a
one year ahead price target for the firm.
Other Requirements
1. The written report must contain at least 5000 words
(10% deduction per 100 words below 5000)
2. The written report must be turned in as a PDF
(5% reduction if any other format is used)
3. The valuation model must be in Excel format or another pre-approved format
(10% deduction if in an unapproved format)
4. The valuation model must follow best practices for spreadsheets
(15% deduction if lacking)
5. The written report and valuation model must be well-formatted
(5% deduction for poor formatting)
6. The written report must include a title page with key information, including word count.
(5% deduction if lacking)
7. All external sources of data and references must be cited in a consistent format
(15% deduction for failure to cite)
8. Each deliverable must contain at least two sections from the report
(10% deduction for each missing section)
2
CATEGORIES
Economics
Nursing
Applied Sciences
Psychology
Science
Management
Computer Science
Human Resource Management
Accounting
Information Systems
English
Anatomy
Operations Management
Sociology
Literature
Education
Business & Finance
Marketing
Engineering
Statistics
Biology
Political Science
Reading
History
Financial markets
Philosophy
Mathematics
Law
Criminal
Architecture and Design
Government
Social Science
World history
Chemistry
Humanities
Business Finance
Writing
Programming
Telecommunications Engineering
Geography
Physics
Spanish
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f. Three Social Entrepreneurship Models
g. Social-Founder Identity
h. Micros-enterprise Development
Outcomes
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a. Indigenous Australian Entrepreneurs Exami
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others) processes that you perceived occurs in this specific Institution Select one of the forms of stratification highlighted (focus on inter the intersectionalities
of these three) to reflect and analyze the potential ways these (
American history
Pharmacology
Ancient history
. Also
Numerical analysis
Environmental science
Electrical Engineering
Precalculus
Physiology
Civil Engineering
Electronic Engineering
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Algebra
Geology
Physical chemistry
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Civil
Probability
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Identify a specific consumer product that you or your family have used for quite some time. This might be a branded smartphone (if you have used several versions over the years)
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Chemical Engineering
Ecology
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Organic chemistry
Geometry
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Topic
You will need to pick one topic for your project (5 pts)
Literature search
You will need to perform a literature search for your topic
Geophysics
you been involved with a company doing a redesign of business processes
Communication on Customer Relations. Discuss how two-way communication on social media channels impacts businesses both positively and negatively. Provide any personal examples from your experience
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Develop a community-wide intervention to reduce elevated blood pressure and hypertension in the State of Alabama that in
in body of the report
Conclusions
References (8 References Minimum)
*** Words count = 2000 words.
*** In-Text Citations and References using Harvard style.
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Electromagnetism
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Topic: Purchasing and Technology
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be aware of which features their competitors are opting to include so the product development teams can design similar or enhanced features to attract more of the market. The more unique
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Ethical behavior is a critical topic in the workplace because the impact of it can make or break a business
No matter which type of health care organization
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Computers are being used to monitor the spread of outbreaks in different areas of the world and with this record
3. Furman v. Georgia is a U.S Supreme Court case that resolves around the Eighth Amendments ban on cruel and unsual punishment in death penalty cases. The Furman v. Georgia case was based on Furman being convicted of murder in Georgia. Furman was caught i
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We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities
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The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case
4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972)
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